As parliament rises this week there is more at stake for Australian housing than at any time under the Albanese government. 105,000 new build-to-rent (BTR) homes.
If the government succeeds, 105,000 homes more than doubles, and complements, the welcome Housing Australia Future Fund and state support which will deliver a total of 40,000 homes by 2029.
The Feds have not opened the door to new housing on this scale in generations.
Before now, not enough supply of homes to rent, to buy, of purpose-built student accommodation, retirement living communities or government social housing since at least the turn of the century.
The average age of a first home buyer is now 37 in Sydney. 36 in Melbourne. A crisis by Australian standards.
Most parliamentarians recognise that now. The national target agreed by the Prime Minister and Premiers and administered by the Treasurer and Housing Minister bring hope for concerted action.
And BTR housing is part of the bridge to the 1.2 million homes target. Australia is currently tracking to 943,000 homes by mid 2029. 260,000 off the pace.
That is where purpose designed, long-term residential rental accommodation predominantly owned, managed and operated by an institutional investor for a long-term investment period, which includes longer tenure, shared facilities and community programs fits.
The next few weeks are therefore vital for the supply of new Australian homes.
For the record, drafted as the Property Council proposed for a decade, this legislation could have delivered 150,000 new apartments by 2033.
Hard to believe that over that lost decade, overseas institutional investment in housing faced and faces twice the tax burden of investment in sheds, shops and offices in the very same Australian cities.
Harder to believe the draft legislation that was served up in April, 11 months after the government could have claimed a smart win in the May 2023 budget, is actually investment decretive. But moving on.
The government and the Senate crossbench will soon hammer out the fate of those 105,000 new BTR homes.
This includes almost 1,100 homes per annum for low-income earners that become available immediately. EY modelling shows a total cost to the Feds of $10 million over ten years.
It has taken industry and the not-for-profit sector to define the future. Supported ably by the cross bench in both houses.
As it stands, modest drafting amendments to the current dead rubber draft legislation will bring to life the 105,000 homes compromise agreed by the Community Housing Industry Association (CHIA) and National Shelter.
105,000 homes over ten years is a lot of rental supply.
We need the parliament to pass this so we can focus solely on the other heavy lifting – the financial, labour, last mile infrastructure and planning hurdles in front of the hopefully million plus homes the market will deliver by 2029.
We are championing critical changes to draft laws that are make or break for an investable, scale BTR housing option in Australia as seen successfully in the US, 12 per cent of the Resi market, and the UK, five per cent of the resi market.
Nothing threatening about it. Just a stable pathway for real people to save for whatever they need next, without rental insecurity, including buying a home.
Our allies in the recent Senate BTR hearings, CHIA and Shelter, want what anyone serious about our housing challenge wants. More great homes faster.
If improved and passed before the Federal election, that means the draft legislation could enable 40,000 – 50,000 homes by 2029.
The kicker: it would cost the government a paltry $9.3 million over a decade.
105,000 extra homes at cost to government of $9.3 million is one of the great no-brainers of modern Australian politics.
We are looking for the support of all federal parties in making this vital housing option an investable reality.
Committees
And finally, a friendly reminder that our Committee nomination process opens for members on September 4. Find the list of Committees here.
Next week: retirement living centre stage