rates, Australia will need to increase the number of Census 2016 results demonstrate that homes it builds each year by 20 per cent from this apartments and semi-detached dwellings year up to 2050. This amount will be required to are housing a larger proportion of Australian avoid worsening the existing affordability challenge households. This trend has partly been driven that the community already faces. by households acting on a preference to enjoy Achieving this goal is a challenge in its own inner-city living, which is most accessible through right. The challenge would be magnified if apartment dwellings, and the affordability of Australia’s household income growth returned apartment living. A third of Australian households to a rate above its long-term average because are now living in an apartment, compared with this outcome would generate further housing five per cent 25 years ago. demand. If this does occur, then Australia will Addressing the affordability crisis is not a task need to build in excess of 250,000 homes each that can be completed in a few years, or by year on average simply to ensure that the current amending single policies such as negative gearing affordability challenge is not amplified. and capital gains tax, placing punitive charges on foreign investors or focusing on short-term A third of Australian households are development strategies. now living in an apartment, compared A meaningful response to the affordability crisis with five per cent 25 years ago must see the needs of the housing industry as a key focus of government policy – at each of the three levels of government. Improvements in the delivery By way of comparison, Australia built just of residential land and accelerated approvals 175,000 dwellings per year on average over the processes for new homes are required. 17 years since 2000. A summary of the new home construction levels required up to 2050 is provided below. Details Estimate of Future Housing Demand from 2018 to 2050 regarding the research and analysis underpinning Population Growth Low Medium High these projections are provided in the Housing Australia’s Future report. Household Low 131,371 167,041 215,123 This shift upwards in the number of new homes Income Growth Medium 148,737 184,407 232,489 required has not, and cannot, be met solely with the construction of the traditional detached house. High 166,103 201,773 249,855 PREFER HARDCOPY? Get your National Construction Code (NCC) 2016-2019 at any HIA OfficeVolume 1 and 2 are available BCA (Volumes 1 & 2 of the NCC) Why hardcopy? Members: $280* > Convenience of at hand access when and where you need it on site Non-members: $360* Volume 2 only > Students can refer to and make notes during class regardless of internet access Members: $155* > No need to print thousands of pages yourself Non-members: $190* The National Construction Code (NCC) provides the minimum necessary requirements for *Pricing includes GST but not delivery fees.safety, health, amenity and sustainability in the design and construction of new buildings (and new building work in existing buildings) throughout Australia. The Housing Industry Association reproduces the Building Code of Australia (Volumes 1 and 2 of the NCC) under licence from the Australian Building Codes Board. Volume 1 pertains to Commercial Buildings (Class 2-9 Buildings) and Volume 2 pertains to Residential Buildings (Class 1 & 10 Buildings). Order now via HIA Shop at hia.com.auor visit your local HIA office. For more information call 1300 650 620. MAY 2018 HOUSING 37 Source: HIA EconomicsIN FOCUS • ECONOMICS