Increasing housing supply can help solve intergenerational challenges: Graham Wolfe

GUEST OBSERVATION

We welcome the focus that the Intergenerational Report has placed on meeting Australia’s future economic, social and housing needs.

The Intergenerational Report is an essential exercise in looking ahead over the coming decades, highlighting the challenges we are facing as a nation to our economy and to our standard of living.

Top of this list must be housing Australia’s growing and ageing population, which is forecast to reach almost 40 million by 2050.

Housing is the bedrock on which all other facets of society are built. Without shelter, families and individuals cannot participate in the economy to their full potential.

Fortunately, residential construction is not only the challenge, but also the answer.

Challenges highlighted by the IGR are:

1. Housing our growing population;
2. Providing appropriate housing for an ageing population;
3. Ensuring housing is affordable for all Australians;
4. Job creation and workforce capacity to retain our standard of living for future generations.

New housing construction generates a range of economic benefits, which flow from the IGR, including:

• New job creation;
• Greater economic activity;
• Appropriate shelter for all;
• Productivity growth through housing policy reform;
• Flow on activity to other sectors, including manufacturing and retail;
• Broader government revenue base.

To achieve a significant increase in the delivery of housing that is affordable and meets the nation’s future demographic needs, governments must focus on investment in economic and social infrastructure, increasing the supply of residential land, and removing impediments in the planning system.

Graham Wolfe is the HIA's chief executive of industry policy and media.