Why Australia’s Housing Crisis Is a Warning for the World

apparently a hundred years ago there were witches who actually lived here but that hasn't stopped it from being one of the most popular houses on the market this year there is a gaping hole as you enter the front of the house we put a bit of "Use boards in there but still "We recommend that people overlook if they can, some of these houses are in such bad condition that we have to get people to sign waivers so they understand what they're getting into." We have received over a thousand online inquiries, we have shown around 60 people through the house, we have sent out 30 contracts and the market response has been 1.3 to 1.4 million, so it makes it a great raw site for someone looking to renovate, Kevin, right?

I want to know it here too, yes, ladies and gentlemen, we are here to sell, so we open the bidding, ladies and gentlemen, at one million one hundred thousand. I thank you for that, sir, one five in a million six, I have oh navigation of one. 918 million, so congratulations ladies and gentlemen, have a bigger one tonight alarm bells are ringing in Sydney, known as Australia's leading property market, the coastal city ranks as the second least affordable property market in the

world

out of 94 cities Importantly, this rush is very overwhelming, there is not enough Supply and there is too much demand.

I have been selling in the area for the last 18 years. The Sydney market is the strongest in Australia and that has to do with the beaches, the accessibility to the city's airports, it is a fantastic location with a great lifestyle scene and I think it is the fastest growing population in all Australian cities and that will always cause prices to rise when land and

housing

are scarce. The toughest market I'm finding for buyers is low-income first-time homebuyers and them. We often look at one or two bedroom apartments because you can imagine that when rates go up from two percent to six percent, that's huge for someone who is on one salary and looking to buy their first home, it gets close to globally from the UK to Singapore with little to no sign of relief, so what is driving this

housing

crisis

and what are the consequences for buyers, sellers, construction companies and the government?

National house prices in Australia have increased by 33 since the start of the pandemic, at the same time interest rates are noticeably higher now, the reason we are seeing this is the fact that we have very strict conditions with regarding the offering of shares in the market; We also have the unemployment rate, which is at a multi-decade low, which adds an extra sense of security for home buyers, so we continue to see housing demand being driven by a very strong rebound. in net migration. Greater Sydney's population is expected to grow by 1 million by 2041 to 6.1 million people to cope with that.

According to government estimates, the state needs about 900,000 additional homes by then, but the low supply of homes for sale is not the only problem. The rental markets in Australia are facing incredible challenges right now, which is why we have vacancy rates that are at or near record lows in most capital cities across Australia, we have very strong rental demand and that continues to exceed the supply of available rentals. Less than one percent of the country's rental properties are available for occupancy, which is the lowest among comparable markets. globally and the shortage of supply partly explains why house and apartment rents increased by 16 and 20 respectively in the last year alone.

When we look at the affordability challenges presented by the property market in Australia, we see that it is about the younger generation of Australians. who are most affected by these challenges and also among people with lower incomes. Harry, 23, and his mother live on the outskirts of Sydney. Harry is a student and has a part-time job, with a two-hour commute each way. Having been left with no choice but to move from house to house, the house we had been previously housed in, I think we started renting it for 470 or 500 a week, went up to 550 and we just couldn't keep it up.

To cover the cost, my mother is a Catholic elementary school teacher, she has lived in the area for over 20 years and cannot afford to live in the same area she lived. Harry says they got evicted from their rental house in 2022 when they asked for shower repairs and suddenly we had to drop everything and spend all our time looking at rental properties, just inspection after inspection and we spent the afternoon going to inspections and applying for properties and without receiving a response from one of the In the inspections we went to in a nearby suburb we got there and there were about 85 people.

I think we count, you don't really stand a chance when there's so many people going, same thing with the countryside and it's like wow, you know, let me make a resume for my dog. The remaining obstacles to building more homes to alleviate the supply shortage at the bottom are construction collapses with companies going bankrupt by the dozens, a pandemic-fueled construction boom is partly to blame as construction companies have agreed fixed-price contracts with quarantined homeowners looking to spruce up their properties, but then the cost of labor and building materials soared along with inflation, according to the Australian Builders Collective.

Homes are now 30 percent more expensive to build than before the pandemic for any type of relief. Relief can't come soon enough. One way to help alleviate the current challenges in the Australian housing market is to also incentivize or increase the supply of social and affordable housing for an often overlooked portion of the housing market participants for whom it is crucial. to be able to access stable and secure housing tenure across Australia housing Housing supply and affordability is a challenge, we are looking at opportunities for greater densification, we are looking to provide more planning Pathways for different types of housing typologies, in Firstly, increasing the social housing stock where you live is not just a roof over your head or it is your community it is where you build your family it is where you build your networks it is how you get to know people it is your sense of self we have recently received 610 million dollars from the Commonwealth government that will go directly into social housing and the government has a contribution it makes to social housing of millions of hundreds of millions every year to ensure that we reinvest in new and improved social housing right now every The aspect of renting in this country is focused on profit, the house is such an indescribable thing, you know, but realistically you may not even have the privilege of owning your own house, boom boom boom.