Without further housing stimulus and a directed policy towards encouraging net overseas migration, when borders eventually open, the Australian economy will fail to recover as strongly and swiftly as Australia requires.
Projections for the Underlying Demand for Social Housing
The need for additional affordable and social housing is real and urgent. This important housing cohort will continue to grow, especially given that almost 600,000 people lost their job in April alone, following the nationwide COVID-19 restrictions implemented by all levels of government.
The overall implication is that the most direct approach to addressing the demand for new housing will stem from internal sources of ‘market failure’ which already existed, meaning there was a pre-existent lack of supply. Market recovery is unlikely to come from overall housing demand which is primarily driven by the private sector, as is outlined further below. The provision of social housing is a primary example of contemporary demand for new housing which reflects a pre-existing shortage of dwelling stock.
Contributing to our social housing waiting lists are now the thousands of rough sleepers who had been placed in accommodation (often hotels) for protection during COVID-19 lockdowns. The NSW government, amongst others, is looking to find a solution for those in Temporary Accommodation, however the difficulty remains: a lack of dwelling stock.
Source: Powerhousing Australia: Australian Affordable Housing Report F2021