New South Wales workers address affordability crisis with $30 million build-to-rent scheme

Labor unions in New South Wales (NSW) have pledged $30 million (US$21 million) ahead of the next state elections to boost the supply of rental housing to address the growing affordability crisis. It has pledged to offer a pilot scheme from construction to rent.

‘Teachers, doctors and merchants are forced to live in community cars because they cannot find rental cars,’ said NSW Labor leader Chris Minnes. Said on social media. “This is a crisis. We will act.”

“Increase supply in the area to provide more affordable rental housing.”

The pilot program will build “urgently needed” rental housing on the South Coast.

The property will be built on government land by Landcom, a state-owned land and property development organization, and workers said they are obliged to maintain at least 30 percent of the housing as affordable housing or social housing. .

Rent collected will be reinvested in more public housing.

Treasurer Matt Keane criticized the campaign promises as “very understated.”

The current government already has similar plans with 12 build-to-rent programs, including 500 units in central Sydney, he said.

Meanwhile, Australia’s NSW Urban Development Institute (UDIA NSW) has asked both the Labor and Coalition parties to provide state shares for new housing under the Federal Labor Party’s National Housing Agreement.

“UDIA NSW welcomes Labor’s commitment to pilot a construction rental housing program on surplus government land,” said the institute. Said.

“Build-to-rent is a growing sector in Australia, increasing property security along with high comfort. It will attract you.”

This comes after the state Labor Party proposed cutting stamp duty for 46,000 first home buyers.

Mings pledged to waive up to $800,000 (US$550,000) in residential stamp duty if elected.

according to According to the Australian Bureau of Statistics, the median house price in Sydney was $1.2 million, compared to $775 million for a home in rural NSW.

As a result, Sydney residents in particular have suffered from rising house prices. According to Demographia’s 2022 edition of the International Housing Affordability report, Sydney ranked as her second most affordable city in the world to buy a home.

This has led to more residents entering the rental market, with record rental growth set for 2022.

Jenny Leung, a Green Party housing spokesperson, said the rental system was “broken” and expressed disappointment with the state Labor Party and coalition government that voted against the Green Party’s rent freeze bill.

“Housing is a much bigger cost to people’s weekly budgets,” she said. I have written on Twitter.

“If the Liberals and Labor had backed the Greens’ rent freeze bill before Christmas, renters would now benefit from this cost of living relief instead of tackling larger and unfair rent increases. prize.”

rental crisis

Recently, a video appeared on social media showing a long line of people waiting to see a property for rent.

Ciara O’Loughlin, who moved to Sydney from Ireland over the New Year, filmed her experience looking for a rental property after facing huge queues.

“From what I’ve heard, people are offering more than the offered rent to secure a place, so it’s become very competitive,” says O’Loughlin. Said daily mail.

Nationwide rents have risen 22.2% since September 2020, the largest rent increase on record, according to real estate research firm CoreLogic.

In 2022 alone, growth reached a record high of 10.2% as vacancy rates slowed down towards the end of the year.

“While the slowing pace of rent growth may be a sign that the rental market is beginning to change, it is not yet good news for tenants. increase. Said.

The slowdown in rental growth in December was attributed to increased supply, but Owen wasn’t sure the downward trend would continue.

“It’s not entirely clear whether the rental market will continue to nudge towards a tipping point, or if it’s just a temporary seasonal lull with new listings running through December.

AAP contributed to this article.

Rebecca Chu

Rebecca Zhu is based in Sydney. She focuses on the national politics of Australia and New Zealand. Any tips? Please contact her at [email protected]