The housing affordability crisis in Australia has reached a boiling point, with many families teetering on the edge of homelessness due to skyrocketing rental prices. This stark reality was brought into the national spotlight during a recent episode of ABC’s Q+A, where an emotional father, Morgan Cox, confronted the health minister with a brutally honest question that resonated with many Australians.
Broadcasted from Wyong, a federal election battleground on the Central Coast of NSW, the Q+A program became the stage for a poignant moment when Mr Cox, a father at risk of homelessness, shared his distressing situation. With a rent increase notice demanding an additional $180 per week, he calculated an untenable $10,000 yearly hike. Despite his efforts to find a more affordable home and working two jobs, the options were slim and competition fierce, often with immigrants who appeared to have more financial resources.
Mr Cox’s plight is not unique. Across the country, families are being priced out of their homes, with many forced to leave major cities like Sydney in search of affordability. His question to the government was direct and desperate: ‘Is the government going to cut immigration to match housing availability, or are we just going to keep going until every regular working Australian is homeless?’
The audience’s applause signals widespread empathy for Mr Cox’s predicament. Federal Health Minister Mark Butler, present on the panel, expressed his sympathy and acknowledged the widespread nature of the housing crisis. He outlined the government’s efforts to manage immigration levels, which had been reduced from a record 536,000 in 2022-23 to 446,000 in 2023-24, according to the Australian Bureau of Statistics (ABS). Despite missing the Prime Minister’s target of 395,000, the aim was to eventually return to a more ‘sustainable’ long-term average of 235,000.
However, Mr Butler’s response did little to assuage Mr Cox’s frustration. The issue of housing supply was highlighted as a critical factor, with the minister admitting that Australia needs to build more houses to accommodate its population. The challenge of balancing a tight labour market, skill shortages, and the economic contributions of immigration against the need for adequate housing was acknowledged as a ‘fine balance’.
The Q+A host, Patricia Karvelas, turned to former NSW treasurer Matt Kean for further insight. Mr Kean emphasised that the issue was more complex than just immigration, pointing to the need for increased housing supply and streamlined processes for home construction. He criticised the excessive ‘red tape and green tape’ that hindered development across the country.
The housing crisis’s severity was underscored by a recent photo from a Sydney rental inspection, where a massive queue formed for a property listed below market rate. The landlord’s decision to prioritise affordability for tenants was a rare act of generosity in a market that often seems indifferent to the struggles of renters.
The discussion on ABC’s Q+A has shed light on the pressing challenges of Australia’s housing affordability crisis. While government efforts and expert opinions offer insights into potential solutions, many families continue to face uncertainty in securing stable and affordable housing.
What do you think are the key factors contributing to the housing crisis? Do you believe policy changes alone can make a difference, or is a broader approach needed? Share your thoughts in the comments below.
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Clearly supply and demand is the driving factor and high immigration is a driver of demand.
So immigration numbers need to come down a lot.
But there is also the supply side which is mired down in excessive red and green tape plus investors chasing maximum profits while the government is failing to deliver affordable public housing like it did many years ago.
Then we have the old chestnuts of 50% capital gains tax concessions and negative gearing for housing investors which costs the government billions in foregone taxes while delivering very little in the way of additional housing. These tax concessions are really just a huge tax dodge used mainly by the very wealthy. Both should be abolished and any additional taxation revenue used to construct affordable housing.
STOP ALL immigration for a couple of years. Build more affordable housing faster and set a rent ceiling to allow low-income people to have a chance of a place to live and raise their children. Also stop people/companies from avoiding their share of taxation by using overseas tax hubs. All money earned in Australia should be taxed at the going rate and not sent away to avoid any tax. The billions of dollars of avoided taxes could build many, many houses and units all over Australia. The government must step up NOW and fix the situation of lack of suitable housing.
Immigration and the real estate sector are fueling the housing crisis along the help of politicians, as usual the government does nothing until it’s too late, sack both parties.