Australia’s housing crisis has become an unignorable issue, affecting a vast portion of the population. The lack of affordable housing options has reached a tipping point, with many Australians unable to buy or even find suitable rental homes. A recent YouGov survey, commissioned by the Property Council, highlighted that housing is now the second-largest concern for Australians, only surpassed by the cost of living.
This crisis has prompted strong community support for the Build-to-Rent bill, which offers a glimmer of hope for addressing housing shortages. Leading politicians and peak industry bodies are advocating for legislation to increase housing availability, affordability, and stability for renters.
The Need for Urgent Action
Australia’s housing crisis has grown into a national emergency. The Build-to-Rent bill, championed by various independent politicians, seeks to deliver a substantial increase in rental housing, especially targeted at low- to middle-income earners. Yet, despite federal and state first-home buyer grants, affordable home ownership remains out of reach for many Australians. This highlights the importance of immediate intervention and innovative approaches like build-to-rent solutions.
Statistics reveal a troubling trend: nearly three in five people are renting because they have no other option, and many lack optimism about ever owning a home. With 79% of survey respondents noting a severe shortage of affordable housing in their areas, the message is clear—Australians want and need a change. It’s time to reimagine housing policy and increase options for renters by exploring feasible, large-scale alternatives.
Strong Community and Political Support for Build-to-Rent
The YouGov survey results reveal overwhelming public support, with 61% of Australians backing the joint proposal from peak bodies like CHIA, National Shelter, and the Property Council. This proposal advocates for the Build-to-Rent bill, aiming to create over 100,000 new rental properties, many of which would include dedicated affordable housing options. The widespread backing for this initiative indicates strong bipartisan support, which could be a crucial factor in its passage through parliament.
Interestingly, the support for build-to-rent spans the political spectrum. Half of Green voters and a third of Coalition voters indicated their support for the proposed legislation. Senator David Pocock, one of the bill’s strongest advocates, expressed the need for parliament to set aside political differences and prioritize people’s needs over political gains. As he states, “The Parliament needs to put politics to one side and listen to what people are saying they want when it comes to policies that will deliver more affordable housing.” This unity among voters and leaders underscores the potential of the Build-to-Rent bill to bridge political divides and provide tangible solutions to a pressing crisis.
Financial Feasibility of Build-to-Rent Solutions
While many large-scale housing proposals are often criticized for their high costs, the Build-to-Rent proposal is notably cost-effective. Financial analysis from EY estimates that the cost to the federal budget would be just $980 per new build-to-rent unit per year over a decade. This comparatively low figure offers significant value, particularly given the dire need for affordable housing.
As Senator Jacqui Lambie highlighted, Australian super funds are already investing in similar rent-to-buy schemes overseas. The proposed bill could encourage Australian funds to reinvest locally, allowing these resources to benefit the Australian housing market rather than foreign ones. This aspect not only makes the Build-to-Rent model financially viable but also highly beneficial for the Australian economy by keeping funds and investments within the country.
Why Build-to-Rent Is a Vital Component of Housing Solutions
The Build-to-Rent model is an innovative approach to rental housing, designed to provide long-term rental properties managed by developers or investment funds, rather than individual landlords. This approach often includes rent-stabilization measures and is geared toward providing affordable, quality housing for renters over the long term. By establishing dedicated, professionally managed rental properties, this model offers stability and affordability for tenants who may otherwise be at the mercy of fluctuating rental markets.
For essential workers like teachers, nurses, and emergency responders, who are frequently priced out of city centers, this model could provide much-needed housing security. These workers are often forced to live far from the areas they serve due to rising housing costs, affecting their quality of life and increasing commute times. By focusing on affordable, well-located rental properties, Build-to-Rent offers a sustainable solution that allows workers to live closer to their workplaces, benefiting both individuals and the community.
Next Steps for Housing Reform: Ensuring Build-to-Rent’s Success
The future of Build-to-Rent in Australia depends on swift legislative action. With parliament facing an urgent deadline, the independents pushing for this bill are calling on all political parties to support these vital housing reforms. Advocates stress that while build-to-rent is not a complete solution to the housing crisis, it represents a significant step in the right direction. As Dr. Ryan explained, “Every policy lever needs to be pulled on housing—with strength and with urgency.”
The housing crisis affects Australians of all ages and demographics, but young Australians are particularly pessimistic. Many feel that they may never be able to afford homes of their own. For them, Build-to-Rent offers a way to achieve stable, affordable housing without needing to navigate the unpredictable and expensive homeownership market.
The bill’s advocates are urging parliament to adopt a cooperative approach, bypassing political rivalries in favor of real solutions. Community leaders, independent senators, and representatives from all political backgrounds are calling for bipartisan action, reminding parliament that Australians are tired of partisan squabbles impeding progress on essential issues.
Why Immediate Action Is Imperative
With only a few weeks left in the parliamentary session, the pressure is on to pass the Build-to-Rent bill. The message from Australians is clear—they want action on housing and are increasingly frustrated by political delays. A comprehensive solution to Australia’s housing crisis will require a range of initiatives, including affordable rentals and pathways to homeownership, but the Build-to-Rent model is a strong starting point.
Senator Pocock emphasized the importance of heeding public opinion: “Australians are tired of seeing politics get in the way of solutions.” With widespread support, low budget impact, and the potential to create long-term affordable housing, there is no reason to delay passing this bill.
FAQs
What is the Build-to-Rent bill?
The Build-to-Rent bill is a legislative proposal aimed at increasing the availability of affordable rental housing in Australia by promoting the build-to-rent model, where large-scale rental properties are developed and professionally managed for long-term rental purposes.
Why is there strong community support for the Build-to-Rent bill?
Many Australians are struggling with housing affordability and are seeking stable, long-term rental options. The Build-to-Rent bill offers a promising solution by expanding the supply of affordable rentals, leading to broad community support.
How does the Build-to-Rent model work?
The build-to-rent model involves the development of rental properties specifically intended for long-term leasing, typically managed by institutional investors. This model provides renters with stable, professionally managed housing options.
Is Build-to-Rent financially viable?
Yes, the proposed Build-to-Rent model is cost-effective, with an estimated budget impact of only $980 per new rental unit per year over a decade. This offers a significant return on investment in terms of housing stability and affordability.
What role do superannuation funds play in Build-to-Rent?
Australian superannuation funds could play a key role by investing in build-to-rent properties within Australia, redirecting their investments from similar overseas projects to benefit the local housing market.
How can Build-to-Rent help essential workers?
Build-to-Rent can provide affordable rental housing near city centers, allowing essential workers, such as nurses and teachers, to live closer to their workplaces. This model supports community needs by making housing accessible to those who keep services running.
Resources:
https://www.davidpocock.com.au/strong_community_support_for_build_to_rent_bill
This comprehensive approach highlights the significance of the Build-to-Rent bill and its potential to transform Australia’s housing market by addressing immediate needs and providing a sustainable path forward for affordable housing.