Unlocking Australia’s spare spaces: Innovative solutions to housing crisis
- Replies 15
Australia is currently facing a significant housing crisis, with an alarming disparity between available space and those in need.
The nation’s housing market is struggling to accommodate a growing population, highlighting issues of affordability and accessibility.
This situation has prompted discussions on potential solutions to address the imbalance and ensure more efficient use of existing resources.
Recent research indicates that renting out the approximately 13 million spare bedrooms in Australia could help alleviate short-term housing crisis concerns.
The study from the Queensland University of Technology suggests shifting the housing debate away from increasing supply in the short term and instead focusing on better utilising existing homes.
It also urges governments and policymakers to consider incentivising older homeowners, who are more likely to have spare bedrooms, to rent them out and increase the current housing stock.
The figures are staggering: approximately 3.2 million Australian homes have one spare bedroom, another 3 million have two spare rooms, and 1.2 million have three.
‘New housing supply has long lead times, which means any potential relief is years away,’ the report stated.
‘Millions of empty bedrooms exist, and yet many older homeowners live in poverty rather than risk losing their pension or paying taxes by renting out a spare bedroom.’
Researchers highlighted the Commonwealth's State of Housing System report, which projected that housing demand would exceed supply until 2029.
‘Were policymakers able to address a fear of losing the pension and/or generating a capital gains tax liability on sale, this paper suggests older Australians may be incentivised to rent out spare bedrooms,’ the report continued.
‘A policy position that could provide short-term relief to both the rental and the cost of living crises for vulnerable Australians.’
Wendy Stone, an expert in housing and social policy from Swinburne University, stated that using the existing housing stock is one solution to the housing crisis.
‘So what we know in Australia right now is that we need more housing, so potentially opening up people's spare rooms may be an option where this can be done,’ she explained.
Professor Stone emphasised that governments should focus not only on spare bedrooms but also on the vacant homes throughout Australia.
The last Census revealed that approximately 1 million homes were unoccupied.
‘So this is a different scenario. We're not talking about bedrooms alone here. We're talking about empty dwellings…It's also important that we think about how those dwellings can be better used,’ Professor Stone said.
Professor Stone has proposed solutions to enhance access to the existing housing stock, including imposing restrictions on short-stay accommodation.
Some regions in Australia are already moving in this direction; for instance, the Victorian government plans to introduce a new levy on short-stay accommodation providers, set to take effect from January next year.
‘We need to get dwellings that have been moved over to the tourism industry back into the housing system that can help people have a secure home,’ she pointed out.
Jago Dodson, another expert in housing and urban policy from RMIT University, stated that governments at all levels have decreased their spending on public housing over the past few decades. He believes this has contributed to the ongoing housing crisis.
‘The federal government stopped pumping money into public and social housing directly through the grants and loans to the states,’ he said.
‘That meant that the construction of public and social housing fell away and has declined as a share of stock.’
The latest data from the Australian Institute of Health and Welfare revealed that from 2006 to 2022, the social housing stock increased by only 36,200 dwellings, averaging about 2,260 homes per year.
This is why Professor Dodson advocates for the federal government to adopt an interventionist strategy to address the housing crisis.
‘In the short to medium term, the market is not going to supply the level of housing that's needed to bring crisis down,’ he added.
Professor Dodson referred to a study from the Australian Housing and Urban Institute that advocated for tripling the social housing stock to tackle the public housing waitlists.
‘That requires large-scale construction and requires pretty strong intervention from government…the cheapest way of doing that was through direct government intervention rather than leaving it to the private sector,’ he explained.
As discussions surrounding the potential for utilising Australia’s spare bedrooms gain momentum, the urgent need for effective housing solutions becomes increasingly clear.
While many homes have available space, families are still grappling with the harsh realities of the housing crisis.
A recent report sheds light on the struggles faced by those living in extreme conditions, such as a family of eight currently residing in one of Australia’s tent cities.
This stark contrast highlights the critical need for action to address the pressing housing shortage and support vulnerable communities.
Have you considered renting out a spare room in your home? What are your thoughts on the proposed government incentives? Share your experiences and opinions in the comments below.
The nation’s housing market is struggling to accommodate a growing population, highlighting issues of affordability and accessibility.
This situation has prompted discussions on potential solutions to address the imbalance and ensure more efficient use of existing resources.
Recent research indicates that renting out the approximately 13 million spare bedrooms in Australia could help alleviate short-term housing crisis concerns.
The study from the Queensland University of Technology suggests shifting the housing debate away from increasing supply in the short term and instead focusing on better utilising existing homes.
It also urges governments and policymakers to consider incentivising older homeowners, who are more likely to have spare bedrooms, to rent them out and increase the current housing stock.
New research from the Queensland University of Technology suggests using Australia’s 13 million spare bedrooms to help alleviate the housing crisis. Credit: Shutterstock
The figures are staggering: approximately 3.2 million Australian homes have one spare bedroom, another 3 million have two spare rooms, and 1.2 million have three.
‘New housing supply has long lead times, which means any potential relief is years away,’ the report stated.
‘Millions of empty bedrooms exist, and yet many older homeowners live in poverty rather than risk losing their pension or paying taxes by renting out a spare bedroom.’
Researchers highlighted the Commonwealth's State of Housing System report, which projected that housing demand would exceed supply until 2029.
‘Were policymakers able to address a fear of losing the pension and/or generating a capital gains tax liability on sale, this paper suggests older Australians may be incentivised to rent out spare bedrooms,’ the report continued.
‘A policy position that could provide short-term relief to both the rental and the cost of living crises for vulnerable Australians.’
Wendy Stone, an expert in housing and social policy from Swinburne University, stated that using the existing housing stock is one solution to the housing crisis.
‘So what we know in Australia right now is that we need more housing, so potentially opening up people's spare rooms may be an option where this can be done,’ she explained.
Professor Stone emphasised that governments should focus not only on spare bedrooms but also on the vacant homes throughout Australia.
The last Census revealed that approximately 1 million homes were unoccupied.
‘So this is a different scenario. We're not talking about bedrooms alone here. We're talking about empty dwellings…It's also important that we think about how those dwellings can be better used,’ Professor Stone said.
Professor Stone has proposed solutions to enhance access to the existing housing stock, including imposing restrictions on short-stay accommodation.
Some regions in Australia are already moving in this direction; for instance, the Victorian government plans to introduce a new levy on short-stay accommodation providers, set to take effect from January next year.
‘We need to get dwellings that have been moved over to the tourism industry back into the housing system that can help people have a secure home,’ she pointed out.
Jago Dodson, another expert in housing and urban policy from RMIT University, stated that governments at all levels have decreased their spending on public housing over the past few decades. He believes this has contributed to the ongoing housing crisis.
‘The federal government stopped pumping money into public and social housing directly through the grants and loans to the states,’ he said.
‘That meant that the construction of public and social housing fell away and has declined as a share of stock.’
The latest data from the Australian Institute of Health and Welfare revealed that from 2006 to 2022, the social housing stock increased by only 36,200 dwellings, averaging about 2,260 homes per year.
This is why Professor Dodson advocates for the federal government to adopt an interventionist strategy to address the housing crisis.
‘In the short to medium term, the market is not going to supply the level of housing that's needed to bring crisis down,’ he added.
Professor Dodson referred to a study from the Australian Housing and Urban Institute that advocated for tripling the social housing stock to tackle the public housing waitlists.
‘That requires large-scale construction and requires pretty strong intervention from government…the cheapest way of doing that was through direct government intervention rather than leaving it to the private sector,’ he explained.
As discussions surrounding the potential for utilising Australia’s spare bedrooms gain momentum, the urgent need for effective housing solutions becomes increasingly clear.
While many homes have available space, families are still grappling with the harsh realities of the housing crisis.
A recent report sheds light on the struggles faced by those living in extreme conditions, such as a family of eight currently residing in one of Australia’s tent cities.
This stark contrast highlights the critical need for action to address the pressing housing shortage and support vulnerable communities.
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