The Property Council of Australia has issued a warning that Brisbane is experiencing a shortage of apartments under construction, with less than 3,000 units currently being built this year. This shortage is particularly concerning for young people aged 16 to 17 who are living in shared homes in major Australian cities, as they are facing a rental affordability crisis despite having income support.
According to Homelessness Australia, teenagers in this age group who share property in Sydney are spending a significant portion of their income on rent, with some spending as much as 94 percent. In Brisbane, there has been a sudden increase in the percentage of youth income spent on rental, rising from 76 percent to 83 percent in the past year.
Homelessness Australia’s CEO, Kate Colvin, has highlighted the detrimental impact of these rental affordability issues on young people, emphasizing the need for increased support such as a Youth Allowance of $80 a day and a 60 percent increase in Commonwealth Rent Assistance. She stresses that investing in young people’s future is crucial to preventing homelessness and improving overall productivity in the nation.
In addition to the rental affordability crisis, there has been a decline in apartment constructions in New South Wales and Brisbane, with Housing Industry Association Chief Economist Tim Reardon attributing this decrease to additional taxes introduced in 2017. The Property Council of Australia also warns of a significant drop in apartment construction in Brisbane in the coming years, urging for changes in tax settings to alleviate cost pressures and encourage further investment in the state’s future.
Furthermore, the Property Investment Professionals of Australia (PIPA) has noted that constrained property listings are supporting home values in Adelaide, Brisbane, and Perth. These cities have seen significant growth in property values, with Brisbane experiencing a 53.5 percent increase since March 2020. PIPA Chair Nicola McDougall has called for policy changes to encourage investors back into the market and address the ongoing property crisis in the country. Please rewrite this sentence.
Source link
