Housing Affordability Likely To Remain a Hot Topic in 2023

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With housing prices remaining high and many young Australians struggling to get onto the property ladder, this is likely to remain a hot topic throughout 2023.

This is not a new topic, it is a perception that has been around for longer than I have been alive. 

So what are the real options to ensure the younger generation can get into the market and what do they want?

In terms of what younger generations want in a property, it is suggested that they value affordability, convenience, and sustainability. They are more likely to prioritize location over the size of the property and are interested in properties that are close to public transport, amenities, and workplaces. They also tend to be interested in sustainable features such as solar panels, energy-efficient appliances, and water-saving technologies.

Let’s look at the products first, Are better housing developments an option? Could this be an initiative between the governments and private sector? Smaller in size and built to meet the needs of the younger generations, built in technology and lifestyle considerations that keep the purchase, operation and upkeep affordable. 

These developments can be designed to provide a range of housing options, such as apartments and townhouses, to suit different budgets.

Co-ownership is not a bad option, however comes with its own challenges. These schemes involve multiple parties purchasing a property together, such as friends or family members. This can help to share the financial burden and make property ownership more affordable. You would need to be very conscious of the choice of co-owners and make sure the legalities are taken care of.

If the government was really serious about the affordability issues then a government Rent-to-buy scheme is better than getting them into higher debt levels. These schemes allow renters to gradually build equity in a property by paying rent and additional amounts towards the purchase price. This can be a good option for those who cannot afford a deposit upfront.

I think if we go back to product, while including all thing to minimise cost to build, and the cost to live in, we should also be looking at ways to generate income off our greatest asset, our home, so we are constantly providing better housing options for the population increase, and owners can paydown debt earlier, or minimise the impact of the increase interest rates. This is a state and council based issue and while some areas enable it, many don’t.

There are ways to make housing more affordable. This involves thinking creatively and seeking advice beforehand. Some options require cooperation between government and councils, as well as innovative building designs and uses. Nonetheless, achieving affordable housing in both the short and long term is possible.