Albo pledges $10b to fix housing crisis

The Albanese government will invest $10b in a housing future fund to open up social and affordable lodging to Australians.

The decision comes after fears that the rising cost of living could drive more [older] people to the brink of homelessness and push more Australians to default on their mortgages. 

Increasingly more older Australians face rental stress as the costs of housing and renting reach record highs.

In capital cities, unit rental prices rose by 18.6 per cent in Syndey and 20 per cent in Melbourne over 2022.

Housing costs in Syndey became 12 per cent more expensive over the last year.

Overall, federal data estimated that only one per cent of house listings in Australia are considered affordable for a single person or couple on an age pension.

As a result, the rate of older people facing homelessness has increased from 25.8 to 29.0 per 10,000 people between 2006 and 2016.

Housing Minister Julie Collins will introduce legislation to establish the fund following the $10bn towards affordable housing on Thursday.

Housing Australia body will become the home for key national housing programs and the National Housing Supply and Affordability Council.

It’s anticipated 30,000 social and affordable homes would be built in the first five years of the fund, and investment returns would be used in perpetuity to construct more.

Of those, 4,000 homes will be dedicated to older women at risk of homelessness, and women and children fleeing family and domestic violence.

The government will also get independent advice on what will and won’t work to ensure the government doesn’t create distortions in the market.

“We know too many Australians can’t find anywhere affordable to live. We know too many Australians are facing high rents and wondering how they will make ends meet,” Collins said.

“The introduction of this legislation is a big step forward to start addressing these issues over the long term.

“The fund will also be a shot in the arm for our construction industry, keeping tradies on the tools.”

The announcement comes as Homelessness Australia warns that the rising cost-0f-living is pushing more Australians to the brink.

Chief executive officer Kate Colvin said all governments needed to “urgently fix the problem renters are facing at the moment”.

“It feels like we’re standing on the beach waiting for a tsunami to come (to homelessness),” she told ABC Radio.

“It’s an absolute living nightmare out there for renters at the moment.”

She welcomed the government’s legislation but said there needed to be a way to respond to people “urgently”.

Collins said the government had immediately unlocked up to $575 million to get more homes on the ground more quickly.

“We are looking at policies right across the housing spectrum, and we need to make sure that they’re based on evidence,” she told ABC News.

She also voiced her concern the ninth-straight hike in interest rates – and warning more are to come – could push more Australians to default on their loans.

“We know that far too many people are finding it difficult, and they’re facing some very difficult decisions. Which is why we’re trying to support them in every way we can,” she said.

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