The Real Estate Institute of Australia (REIA) is taking a proactive approach to address the worsening rental crisis in Australia by presenting a comprehensive ten-point plan to the Federal Senate Inquiry.
This plan, unveiled by THE REIA President Hayden Groves, is designed to provide much-needed assistance to the country's eight million renters. In an article published on August 29, 2023, in 'The Real Estate Conversation,' Groves emphasized the urgency of finding Constitutional, government-aligned solutions to combat the ongoing housing supply problem.
The heart of Groves' message strikes a chord with Allison Holzer, the Rental Division Director at First National Real Estate Neilson Partners. Groves articulated the frustrations felt throughout the real estate industry. "In real estate, our business is renters living in successful tenancies, and as an industry, we are all fatigued of turning away high-quality and hard-working applicants due to this catastrophic rental undersupply.
Allison lamented, "We are currently turning away over 93% of potential applicants each and every month. It is simply impossible to assist everyone who needs it."
Mr. Groves' efforts are centered on fostering unity and moving beyond divisive measures such as rent freezes and controls, which some states and territories have been considering.
REIA's ten recommendations aim to tackle the root of the rental crisis
National Bond Snapshot
The Australian Bureau of Statistics (ABS) will collaborate with state and territory bond agencies to provide a comprehensive national snapshot of bonds and rent tenures.
Rental Pain Point Monitoring
Establish a national monitoring system to identify rental pain points, with a particular focus on tenancies that are not professionally managed.
Awareness Materials
Develop a cohesive national program that includes industry-government awareness materials for renters.
Incentives for Property Owners
Create incentives for property owners to transition vacant properties and short-term rentals into long-term rental housing.
Stamp Duty Reform
Commit to long-term stamp duty reform and offer immediate stamp duty waivers for the purchase of rental properties in areas with high demand.
Occupancy Audit
Conduct an immediate occupancy audit across government-owned and funded housing.
Repurposing Non-Residential Real Estate
Explore the feasibility of repurposing non-residential real estate into residential housing.
Rapid Build Homes
Examine options for constructing non-conventional rapid-build homes in areas with high economic growth and housing demand.
Housing Target
Implement the National Cabinet's target to build 1.2 million homes by 2030, with performance mechanisms to hold governments and the industry accountable for achieving this goal.
Housing Australia Future Fund Bill
Advocate for the passage of the Housing Australia Future Fund Bill.
The REIA's comprehensive plan addresses the multifaceted challenges of the rental crisis, combining immediate actions with long-term strategies.
Groves and the REIA are urging all stakeholders to come together to find effective, sustainable solutions to ensure that all Australians have access to safe and affordable rental housing.
If you have questions surrounding this conversation, please reach out to Allison Holzer, Rental Division Director at First National Real Estate Neilson Partners on 9705 4888.
