During the past decade housing affordability has declined dramatically across WA, to the detriment of 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; taxation and fiscal policy. In recent years, low wage growth coupled with the ever increasing cost shift of the provision of infrastructure from local and state government to new home buyers has exasperated the situation.
It is important to note that housing affordability is not limited to the purchase cost of a home, but extends to the ongoing costs of living including transport and utility costs. However, despite changing social and cultural demographics, a decline in the average size of households, there remains limited diversity in 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 (link to planning and development approval process))
- Incentives to promote greater housing diversity 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.