Housing construction is going off a cliff. The warnings have been loud and clear, and everyone has heard them except the Housing Minister.
Last month Master Builders Australia warned the housing industry is facing a “bloodbath”.
Treasury also revealed last month it has forecast housing construction to plummet this financial year.
Today, right at the top of the stack, Minister Sukkar received another warning – this time from his own housing experts.
The National Housing and Finance Investment Corporation (NHFIC) today warned that housing construction could plummet this financial year, and the one after that, and the one after that.
“If this decline is sustained, it could cause a contraction in construction industry that will add to the recessionary forces impacting the economy”.
Minister Sukkar can’t say he wasn’t told. He can’t say he didn’t have the facts.
Labor, the housing industry, Treasury and NHFIC have all warned him housing construction is expected to plummet.
HomeBuilder is not doing enough to turn this around, is too small and is rolling out too slowly. He has failed to act, out of pride or foolishness, by defending the indefensible size, speed and scope of this program.
NHFIC and the housing industry both make the point that private demand for housing is dropping because of the drop in migration.
When private demand for housing drops it makes sense for government to build more social housing.
There is a real need for more social and affordable housing – and building more social housing will help keep tradies in work and speed up economic recovery.
That’s what we did during the GFC – and it worked.
Labor is not the only one calling for this – so are the Housing Industry Association, Master Builders Association, the Property Council of Australia, OECD and many other organisations.
If the Government doesn’t do this in the budget, tradies will know who to blame – Michael Sukkar.
MONDAY, 21 SEPTEMBER 2020
MEDIA CONTACT: ARLEY BLACK 02 9790 2466