
Housing mess: Build baby, build! But it won’t fix it all

Australia is spending billions trying and still failing to get people into decent homes they can afford. Some more radical options could be on the table. Australia’s housing crisis is so deep that federal and state government interventions so far — no matter how welcome — barely scratch the surface of the problem. It could be time for a legislated national housing strategy with the long-term aim of getting the whole population into housing that is adequate and affordable. A key part of that strategy would be to build 950,000 social and affordable rental dwellings by 2041. Certainly the government’s pledge to facilitate the building of an additional 1.2 million homes by mid-2029 is welcome. However, even if this target is reached, most of these additional homes would not be affordable. The other component of that strategy would include reviewing critical parts of the taxation regime around housing — most prominently negative gearing and the capital gains tax discount. Both are key factors in creating a favourable climate for housing to be viewed as an investment rather than just shelter and thereby drive up house prices. First-time buyers are constantly outbid by investors. Although reviewing those tax issues i