PEXA Group welcomes housing measures in Federal Budget but warns of worsening shortages

PEXA Group, Australia’s leading digital property exchange platform and property insights solutions business, has welcomed the early-announced housing measures in the Albanese Government’s third Federal Budget, handed down by Treasurer Jim Chalmers amid a backdrop of high inflation, government debt, and slowing economic growth.

However, PEXA Group Chief Economist Julie Toth warned that housing shortages are likely to get worse before they get better, despite the additional measures and funding announced in the budget.

“The additional measures and funding announced in this week’s Federal Budget are very welcome – $1 billion in new funding will make a real difference to urgently required crisis and transitional housing across Australia,” Ms Toth said.

“However, we remain concerned about Australia’s immediate housing shortage. The Government’s first annual National Housing Supply and Affordability Council (NHSAC) report predicts Australia’s housing shortage will worsen until around 2027, due to rising population, diminishing household sizes and construction supply constraints.”

Ms Toth emphasized that resolving Australia’s housing availability and affordability problems is complex, requiring collaboration between all levels of government, industry, and communities.

In PEXA’s Federal Budget Submission, PEXA and not-for-profit organisation Housing All Australians proposed establishing a national register of all private-sector affordable housing projects across all jurisdictions to facilitate tailored responses to Australia’s urgent housing needs.

The housing-related measures announced by the government include an additional $1 billion for crisis and transitional accommodation, $1 billion for infrastructure to support new dwellings, a renewed 5-year National Agreement on Social Housing and Homelessness, free training places for building trades apprentices, and work with universities and tertiary colleges to boost dedicated student accommodation.

Ms Toth also welcomed the government’s confirmation that it will begin to implement anti-money laundering and counter-terrorism requirements for real estate and other financial transactions by lawyers, accountants, real estate agents, and others, with $166 million allocated to AUSTRAC for implementation and industry education.

“PEXA welcomes this year’s Budget measures to improve Australian housing supply, affordability and financial integrity, now and over the long-term. We commend the Government for prioritising these housing issues in the current economic climate,” Ms Toth said.