During the past decade housing affordability has declined dramatically across WA, detrimental to both the State’s communities and its economy. Housing affordability is impacted by a range of conditions, including: income levels; land supply; the costs of development; the efficiency of the approvals process; as well as taxation and fiscal policy. In recent years, low wage growth coupled with the ever increasing cost shift of the provision of infrastructure to new home buyers has exacerbated the situation.
It is important to note that housing affordability is not limited to the purchase cost of a home, but it is the ongoing cost of housing. However, despite changing social and cultural lifestyles, and a decline in the average size of households, there remains limited diversity in the housing stock whilst the taxation system discourages people from ‘right sizing’.
To assist housing affordability the UDIA calls for:
- An adequate supply of housing land and an efficient development approvals process. (See more);
- Incentives to promote greater housing diversity, affordability and living choices;
- A fair, equitable and transparent infrastructure contribution system;
- Taxation and fiscal policy reform to support the delivery of more affordable housing options. Primary amongst these should be the abolishment of stamp duty and introduction of a broad based land tax;
- An adequate supply of diverse housing typologies and tenures which provide for the diverse needs of WA’s current and future population demographic, including retirees, national disability support requirements, first home buyers and multi-generational housing options.