NSW Housing Crisis May Spark Resident Exodus

by Paul 20. October 2008

The New South Wales Government has informed that there will be a migration of residents to Victoria and Queensland if the slow down of home affordability is not solved immediately. The warning came in the form of a report made by the Australian Competition Policy Research Alliance, found at the University of Newcastle. The research has initiated that the Government's strategy and rules and regulations with regard to the delivery and price of new homes being superfluous and thereby putting in a lot of damage on home costs. The research report also suggests introducing efficient and approachable planning schemes, increasing land releases and lessening developer taxes. It further states that almost all the residents and public are put on a high risk of being trapped by the rental market.

The report further says that there are wider suggestions for the future of New South Wales. The Government can look on how the other states are trying to bring down the barriers on house affordability and take initiative steps. As a state it is, however, less viable in forming a good environment for the people. The Government of New South Wales has to go with the other states where the barriers are less and find out how they handle the situation. Both the Federal Government and the Reserve Bank of Australia has to come to the rescue of the state government in putting an end to the problem. In Victoria, there are one or two places that are very fine in their panel appraisal. According to this report an entire generation of families could be caught in the rental market if the housing affordability issue is not resolved.

In Queensland, at present, the release of lands for housing has created an improvement on the crisis of house affordability. Thus the release of land can also be taken as a step by the state government of New South Wales. Further, the government should also look into the reorganisation of its planning approval process.  The government of New South Wales has to plan as to what scheme it is to undertake to control the crisis on house affordability. There are certain local regional decision making, local councils which has direct relationship to the growth and will be a good incentive to ensure that the housing is affordable in those local areas. This is a different plan which the state government can undertake to control the problem of housing affordability.

The government of New South Wales has to take the problem seriously and take steps to make houses affordable to the common people and prevent the people from migrating to any other state. The housing crisis has ignited the residents to migrate to the nearby states. Hence, as already stated, the state government has the option of controlling the situation by releasing lands, see how the other states are tackling the situation, allot with the local councils to take a decision where it will ensure housing affordability in those local areas, etc.

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Tags: housing affordability, housing costs, nsw government

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