Australia’s housing crisis has been developing for the past 20 years, not solely as a result of the Covid-19 pandemic, according to the Housing Industry Association (HIA).

HIA managing director Jocelyn Martins highlights that there isn’t a single action a government can take within one term to fully resolve this issue, but there are viable solutions. She explains that the current tax system, which requires new home buyers to shoulder an increasing share of government expenditure, has contributed to the decline in new home builds over recent decades. As fewer new home buyers enter the market, the tax burden continues to rise for those remaining.

Martins suggests several initiatives that could help address the crisis, including increasing the supply of diverse housing types, securing funding for public housing beyond election cycles, investing in infrastructure to deliver shovel-ready land more efficiently, restoring foreign investment in home building to boost private rental availability, and expanding the Home Guarantee Scheme to assist more buyers.