The high cost of housing is causing immense stress and harms Australia

By Joe Montero

The unsustainable cost of housing, which is still rising, is central to rising poverty across Australia. It even effects middle Australia struggling with paying mortgages and rents, approaching the point where the ability to put food on the table is a real threat. The cost of housing is breeding discontent.

This issue has been fundamental to the ability of Nazi groups like the National Socialist Network, being able to penetrate a broader audience and spread the lie that it is migrants coming into Australia are the cause of the housing crisis.

Photo by Joe Piette/Flickr

Besides the threats to targeted sections of our Australian community, and this is reprehensible enough on its own, the false claim that migrants are taking the homes of “Australians,” covers for and lets the political establishment that is failing on this score off the hook. This is the second reason why it is essential to call out the failure to ensure decent housing for all, and a cost that people can afford.

There is no excuse. The situation with housing affordability is a national emergency, and it should be treated as one. The decimation of public housing must stop. It must be rebuilt a larger scale, and be part of a national plan, instead of broken down into state fiefdoms with far fewer resources. Building public housing will help those in the most immediate need and will provide the bonus of pulling down property prices and rent across the board.

Mortgage lenders, corporate landlords, developers, and the real estate industry knows this and have an incentive to use their influence to pull down public housing. Furthermore, a large swathe of federal and state politicians has used their positions to grab their own property portfolios. Existing law allows a substantial part of these holding to remain undeclared. They personally benefit from high property prices and high rents and are generally in no mood to turn off the benefit to themselves.

Although public housing is critical, it would be foolish to assume that this alone can meet the need. It will not solve the problem for the huge swathe of those with jobs to cope with unsustainable mortgage and rent burdens. It will do little for the rising generation needing to move out of their parent’s home and start a life of their own. Nor will it help older Australians caught in similar traps and forced to join the workforce instead of enjoying the reward for a lifetime of work and contribution to society.

A policy and practical measures to reduce the cost of housing across the board is what is needed. Relying on a failed market is no answer. Taking steps to reduce and eventually illuminate what is pushing housing coasts up is. A timetable to get rid of negative gearing and capital gains tax evasion, and the removal of land taxes that get passed onto renters, would be a good start.

Investing in affordable, high-quality housing, including varied types of social housing, are even more important. Add the imposition of rent ceilings and mortgage relief for those in need. The problem is not a market shortage of housing but of housing at a cost people can afford. Public intervention and taking up responsibility for ensuring all have the right to adequate and affordable housing, would be an investment on the future of Australia. There will be no economic recovery without freeing Australia from housing stress and providing the means for other economic activity. Failure to resolve the housing crisis will put ever increasing pressure on the building head of steam already in existence. It threatens social upheaval

If our politicians continue to ignore the problem, these politicians will be responsible for the consequences.

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