Affordable Housing Matters in Building Better Australian Societies
Every Australian aspires to own a little piece of land to build their home.
But this dream is slowly fading as prices of houses continue to soar in the inner cities and suburbs of Australia. Not only will this lead to a generation of renters (as mentioned here), it will also negatively affect how people live together unless housing affordability is improved.
The prices of houses in Australia are currently the third most expensive in the world based on the International Monetary Fund (source).
This skyrocketing cost of homes would not be an issue if incomes could keep up. But the wage growth has not kept pace with the explosion of property prices.
If the house you desire to own is 10 to 11 times your salary, how would you afford to buy?
It seems that the Australian dream of homeownership is unattainable. Many factors affect the rising cost of properties in Australia. The two most commonly cited reasons behind the surge of house prices are property tax policies and foreign investment.
Now, if we accept that Australians would become life-long tenants in the future, how prepared are our cities to handle a growing demand for rental properties?
How Expensive Housing Changes Australian Neighbourhoods
High density dwellings are common in the inner cities and usually accommodate young professionals and affluent international students.
Apartments or flats as such often have high occupancy turnover despite heavy marketing. Most renters here are transient so creating good relationship with neighbours is not a priority. No wonder why vibrant, collaborative, and culturally-rich neighbourhood is lacking where impersonal and high-security apartment buildings are built.
The challenges are different for those renting in the suburbs where homeowners and tenants are seen as an uneasy mix. Their status, tenure, and priorities are dissimilar so homeowners view renters with stigma. They perceive them as a threat to their property values because they do not share the same level of concern and commitment for the upkeep of the dwelling.
Long-term, even lifetime renting, was less stigmatised in countries like France and Germany. In these countries, laws and policies have been put in place to protect the rights and uphold the dignity of tenants or renters.
If Australia is to follow the same path, careful planning and tenant laws are required to ensure that renters enjoy their stay wherever they choose to reside temporarily or permanently.
The Future of Ownership and Renting in Australia
What the future holds for Australia’s property situation rests on the hands of a few economic and political leaders who implement tax, foreign investment and labour policies in the country.
It is quite obvious that if the answers were simple, these problems would have been solved. But there are a lot of interrelated factors affecting the soaring prices of house that must first be reviewed before we can reach a comprehensive solution.
As a prospective homeowner, your best shot is to buckle down and save up to afford your first home in less expensive areas of Australia. It is hard but it will be worth your while to fulfill one of your biggest dreams.
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