Grudnoff, a senior economist at the Australia Institute, criticized the 2024 budget for failing to address housing issues in Australia. He described the budget as “depressing” and noted that despite promises of big spending on housing, the changes are only “tinkering around the edges.” Grudnoff highlighted that out of the $32 billion allocated for housing, only $1.4 billion is fresh funding. Concerns have been raised about housing affordability due to high levels of migration and domestic movement between states leading to soaring house prices. Grudnoff emphasized the need for either increasing supply or decreasing demand to provide true relief, criticizing governments for avoiding discussions on lowering property values. He expressed concerns that certain measures in the budget, such as the shared equity plan, could worsen the housing situation by increasing demand. Grudnoff suggested that Australia may need to look at countries like Germany with strong rental laws for potential solutions. Industry stakeholders had mixed reactions to the budget, with the Property Council of Australia acknowledging the focus on housing but calling for improved investment settings and housing approvals to address the housing crisis.
Zorbas commended the treasurer for prioritizing student accommodation and increasing rent assistance.
He suggested that the initiative should also be extended to residents of retirement villages.
The Real Estate Institute of Queensland (REIQ) expressed some skepticism, noting that many budget promises appeared to be aimed at short-term relief rather than long-term planning.
REIQ Chief Operating Officer Dean Milton raised concerns about the impact on mortgage holders and the potential for medium to long-term inflation.
He acknowledged the budget’s efforts to provide cost-of-living assistance through increased rental subsidies but emphasized the need for long-term infrastructure to support new residential development.
Mr. Milton believed the government’s surplus presented an opportunity for new initiatives, particularly in reforming state tax bases away from stamp duty and land tax.
Master Builders welcomed the government’s actions to address the housing crisis but stressed the importance of continued commitment.
CEO Denita Wawn urged government ministers to work together to boost housing supply and meet the targets set in the housing accord.
