A report released by the National Housing Supply Council (NHSC), reflects the ongoing housing shortage and associated affordability problem facing the Australian community, said the Housing Industry Association (HIA).
"The confirmation by the NHSC that Australia faces a protracted housing shortage is consistent with the industry's own view," said HIA Chief Executive Industry Policy and Media Graham Wolfe.
"Without government policy intervention, unaffordability will continue to grow and there will be further threats to home ownership and upward pressure on rents."
"Unless we address housing affordability, such as by reducing the inequitable tax burden on new housing, there will be consequences for society. The Council notes that it is already seeing evidence of overcrowding, particularly in disadvantaged sections of the community."
"Also of concern is the view by the NHSC that there may be a reduction in the appetite for home ownership amongst some sections of the community."
"If future generations of Australians give up the dream of home ownership and this is not matched with a substantial increase in private or public investment in housing, rental costs will increase beyond the means of many Australians, placing enormous pressure public housing waiting lists and the welfare system."
Mr Wolfe also noted the NHSC's comments that access to finance for business and consumers were impacting on the provision of housing.
"The reduction in interest rates since late 2011 is having some positive impact on housing, however, the decision by financial institutions not to fully pass-through interest rate cuts and a lack of finance to builders, developers and households since the GFC is not helping the situation," concluded Mr Wolfe.
