In the context of Australia's elections, the affordability of housing emerges as a major concern, overshadowing the voting process due to escalating property prices.
Down Under, where housing issues have become a national debate, the upcoming elections in Australia will place a significant emphasis on affordable housing, particularly for the working class.
Take for instance, Mary, a 59-year-old former postal worker living in regional New South Wales. She's been struggling to find permanent housing, living in short-term accommodations with her daughter and dog, and still can't afford the median rent of AUD 560 (USD 360) per week. Despite having a meager income from unemployment assistance and occasional seasonal work, Mary's story is far from unique.
Mary plans to cast her vote for the Labour Party, although she admits that none of the major parties are doing enough. Her sentiments reflect the general disillusionment that many Australians feel towards the political establishment, as housing prices and living costs soar.
Soaring housing and rental prices have plagued Australia for years. Despite its reputation of being a prosperous nation, Sydney, the country's largest city, ranks as the second least affordable market globally, according to Demographia International Housing Affordability survey. In fact, a household in Sydney requires about AUD 280,000 (USD 180,000) per year to buy a median-priced home of AUD 1.4 million (USD 0.9m).
Both the Labour and Conservative parties have proposed various housing policies to garner support. The Labour Party pledges to construct 100,000 homes for first-time buyers and increase financial support, while the Conservatives aim to boost construction apprenticeships, invest in infrastructure, and allow younger Australians to withdraw their pensions early to fund their housing deposit.
A major obstacle to tackling the housing crisis is the lack of housing supply, exacerbated by record migration. In 2024, Australia's population grew by an impressive 2.1%, despite a 17-year low birthrate. The construction of social housing, in particular, has been neglected, with 169,000 households waiting for public housing in 2023.
Older women, such as Yumi Lee of the Older Women's Network NSW, struggle with housing inadequacies, as they receive smaller pensions compared to their male counterparts. Lee argues that Australia, often referred to as the "lucky country," is neglecting a significant portion of its population, particularly older women.
To combat the housing crisis, a range of factors need to be addressed, including NIMBYism, labor shortages, and negative gearing – a tax relief mechanism that allows landlords to write off losses incurred from investment properties.
While both major parties have pledged to tackle the issue, critiques suggest that they are shying away from implementing transformative changes. Maiy Azize, national spokesperson for Everybody's Home, emphasizes that the crisis is a product of decades-long neglect and requires immediate attention.
Experts like Bernie Barrett of Better Renting argue that addressing the housing issue involves creating nationally consistent rental laws, as around 30% of Australians rent their homes. Andrea Leong, a 38-year-old renter in New South Wales, urges political leaders to recognize and address the needs of the renters, who she feels have been marginalized in favor of the dream of homeownership.
- The upcoming elections in Australia will focus heavily on the issue of affordable housing, considering the current housing concerns in the country, particularly for the working class.
- Mary, a 59-year-old former postal worker in regional New South Wales, has been grappling with finding permanent housing and is still unable to afford the median rent of AUD 560 (USD 360) per week.
- The Labor Party has received Mary's vote, although she feels none of the major parties are doing enough to address the housing crisis.
- Despite Australia's prosperous reputation, soaring housing and rental prices have made it the second least affordable market globally, with Sydney being a prime example.
- Both the Labor and Conservative parties have proposed various housing policies to win support, such as constructing 100,000 homes for first-time buyers or increasing infrastructure investment.
- Addressing the housing crisis requires tackling obstacles like NIMBYism, labor shortages, and negative gearing, while ensuring that nationally consistent rental laws are in place considering that 30% of Australians rent their homes.
- Financial experts like Maiy Azize from Everybody's Home and Andrea Leong, a renter in New South Wales, call for immediate attention and recognition of renters' needs, who have often been overlooked in favor of homeownership aspirations.
