HIA promotes Action Ideas to invigorate Housing Industry
The Housing Industry Association (HIA) recently went on the offensive, and placed a half-page advertisement in The Australian extolling the fact that the country is facing a housing shortage, as the high cost of residential construction is creating a lack of new housing stock.
The HIA maintained that high taxes, fees and levies are creating a negative impact on house affordability as the building industry declines.
On its website for the Australia Needs Building campaign, the HIA stated that the residential construction sector is building 25,000 fewer homes in 2013 than it did 10 years ago, and said that 150,000 families will miss out on a home by 2020.
HIA director, Shane Goodwin, stated that in this election year, governments needed to adopt policies that support the building industry. Mr Goodwin pointed out that taxes, levies and fees account for 40% of the cost of constructing a new home, and in some markets that cost is higher.
High taxes are having a direct impact on price affordability, and this means that households will pay an extra $670 per month for the life of a loan, which is the same as raising the interest rate on a loan by 5.5%.