Housing Supply
My Plans for Housing Supply in Wentworth
Today's housing crisis is both complex and challenging, with numerous factors influencing it. The two primary issues people are facing are: 1) the high cost of houses, and 2) the limited housing availability. Housing prices are prohibitively high, and the supply of homes is insufficient to meet demand. In Wentworth, 45% of residents are renters, and nearly 80% of them aspire to own homes in the future. Although the housing issue is multifaceted, I am committed to implementing meaningful changes aimed at both reducing housing costs and increasing availability. My goal is to make Wentworth a more affordable, comfortable, and secure place for everyone to call home.
My Key Actions:
- Gradually adjust visa policies to lower immigration numbers over the next few years, alleviating some pressure on housing demand.
- Reform negative gearing to better support first-time home buyers, rather than incentivizing large-scale real estate investors.
- Encourage and increase the construction of new houses and apartments in Wentworth to expand the housing supply.
Let's Talk about Immigration
Australia is renowned for its wealth, safety, and natural beauty, attracting people from all around the globe. Millions have immigrated to Australia in hopes of finding a place to call home. Today, Australia hosts people from nearly 180 nationalities, with over 20% of the population speaking a language other than English at home, and around 30% of Australians born overseas. This cultural diversity enriches Australian society, providing a wealth of perspectives and contributing to the nation's economic and social dynamism.
Economically, immigration has been a boom. New residents help fuel economic growth by filling labor market gaps, fostering competitiveness, and stimulating consumer demand. This helps drive Australia's reputation as one of the wealthiest nations worldwide, with immigration supporting sectors ranging from healthcare to technology.
However, immigration numbers have recently reached record highs, impacting housing availability and affordability. As demand for housing increases with population growth, Australians are finding it harder to secure affordable housing due to rising home prices. To balance these factors, I propose a gradual approach to moderating immigration, helping relieve housing pressures while preserving the benefits of a culturally diverse population and a robust economy.
Why Negative Gearing Needs to Change
Negative gearing in Australia has long been a tool for property investors, giving real estate owners significant tax breaks that make buying multiple properties more affordable for them. However, this practice has a downside. By allowing real estate investors to reduce their taxable income, negative gearing increases demand for housing, driving prices up and making it harder for first home buyers to enter the market. I believe it's time to shift negative gearing benefits toward first home buyers to support Australians who are looking to own their first property rather than amplifying wealth for those already in the market.
To make this shift, I propose adjusting the structure of negative gearing so that it offers stronger incentives for those purchasing their first home. This means capping or phasing out negative gearing tax benefits for investors who own multiple properties while retaining or enhancing them for first home buyers. By creating a tiered approach that prioritizes first-time owners, we can help Australians find secure, affordable housing without completely removing the benefits for those already relying on them. This adjustment would not only improve housing accessibility but also promote a more balanced and fair real estate market for everyone.
More Houses, More Supply
Building more houses and apartments in Wentworth is the most straightforward solution to address the housing supply issue. Increasing the number of available homes is one of the best ways to bring down prices and make housing more accessible. However, this is easier said than done, as Wentworth has limited space left for new developments. This scarcity of land means that every project needs careful planning to make the most of the available space, and we have to get creative about where and how we build.
I am committed to finding ways to add new housing units to Wentworth's landscape. This might involve developing underused spaces, increasing building heights in specific areas, or repurposing existing sites. By prioritizing sustainable and efficient building practices, we can tackle the supply issue head-on, making Wentworth a more affordable and comfortable place to live without compromising the character of our community.
