{"id":37863,"date":"2022-04-06T05:17:34","date_gmt":"2022-04-05T17:17:34","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=37863"},"modified":"2022-04-06T05:17:34","modified_gmt":"2022-04-05T17:17:34","slug":"time-bomb-australias-680m-disaster","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/time-bomb-australias-680m-disaster\/","title":{"rendered":"\u2018Time bomb\u2019: Australia\u2019s $680m disaster"},"content":{"rendered":"

PHOTO: A neglected problem at the core of Australia\u2019s property market is causing increasingly disastrous consequences, new research shows.<\/strong><\/p>\n

A dearth of social and affordable housing in Australia is costing communities tens of millions of dollars per year, and placing a \u201ctime bomb\u201d at the heart of our economy.<\/p>\n

That is according to new analysis from Dr Andy Nygaard, an Associate Professor at Swinburne University of Technology\u2019s\u00a0Centre for Urban Transitions<\/a>.<\/p>\n

Dr Nygaard\u2019s research suggests insufficient investment in social and affordable housing is now costing the national economy a whopping $676.5 million in foregone social and economic benefits each year.<\/p>\n

And that cost is set to keep growing, to as much as $1.286 billion by 2036.<\/p>\n

The thrust of the analysis is that a lack of affordable housing doesn\u2019t just hurt the people who can\u2019t buy or rent homes. It harms society as a whole.<\/p>\n

For example, a lack of housing leads to more homelessness. And more homelessness creates a higher burden on the public health system.<\/p>\n

Another example: if a victim of domestic violence has nowhere to go, he or she is more likely to remain trapped, unable to escape an abuser. This adds to the burden on the justice system.<\/p>\n

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\"A<\/div>\n

A property for sale in Sydney. Picture: Gaye Gerard\/NCA NewsWire<\/strong><\/em><\/div>\n

Dr Nygaard sought to quantify the price these problems carry for Australian communities.<\/p>\n

\u201cThese costs cannot be ignored,\u201d he said.<\/p>\n

\u201cThe social and economic problems associated with our affordable housing shortage will only increase over the next decade if we keep doing what we have been doing \u2013 very little.<\/p>\n

\u201cIn the absence of additional investment, communities are going to see considerable strain on homeless shelters, police, hospitals and other public services.<\/p>\n

\u201cHouseholds will have less to spend on children\u2019s wellbeing and education. Employers may also feel the cost of increased absenteeism.\u201d<\/p>\n

To arrive at his conclusions, Dr Nygaard took a suite of factors into account, including: the public sector health costs associated with homelessness, stress and depression; the health and justice system costs caused by domestic violence; reduced disposable income; and the private sector costs associated with stress and depression.<\/p>\n

His modelling identifies which communities are currently paying the worst price.<\/p>\n

At the top of the list is Sydney\u2019s inner south west, with a cost of $28.2 million in 2020, which could grow as high as $52.5 million in 2036.<\/p>\n

The Gold Coast is in second with a figure of $27.9 million, growing to $45.6 million, followed by inner Melbourne with $22.9 million, rising to $51.2 million.<\/p>\n

Rounding out the top ten are Parramatta, Tweed, west Melbourne, the city and inner south of Sydney, the Sunshine Coast, southeast Melbourne and the outback in the Northern Territory.<\/p>\n

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\"The<\/div>\n

The ten areas with the highest costs associated with a lack of affordable housing, as identified by Dr Nygaard.<\/strong><\/em><\/div>\n

Kate Colvin is the national spokeswoman for\u00a0Everybody\u2019s Home<\/a>, a campaign whose goal is to \u201cfix the housing crisis\u201d. It was launched back in 2018 by a coalition of housing, homelessness and welfare organisations.<\/p>\n

Ms Colvin said Dr Nygaard\u2019s research showed a lack of investment in affordable housing was \u201cpushing Australians into acute stress and dysfunction\u201d.<\/p>\n

\u201cThe real world impact is extra trips to hospital emergency wards, more psychological counselling, lower school achievement, lower incomes, women and children unable to escape from family violence, and more stress on our police and courts,\u201d she said.<\/p>\n

\u201cOur current housing policies are utterly perverse, and we are all paying for it.\u201d<\/p>\n

Ms Colvin argued Australia\u2019s policies were \u201cso lopsided\u201d that \u201cwe are making our people sick or requiring them to live with violence\u201d.<\/p>\n

\u201cEach year, for example, an estimated 7690 women return to (domestic violence) perpetrators because they have nowhere to go, and an estimated 9120 women become homeless,\u201d she said.<\/p>\n

\u201cThis is a social and economic time bomb that will only be defused by investing in adequate social and affordable housing.<\/p>\n

\u201cAt least 40 per cent of the population is unlikely to ever have the financial firepower to own a home. Amid skyrocketing rents, the best solution is to provide more options for people on low and modest incomes.\u201d<\/p>\n

In last week\u2019s federal budget, the government announced it would\u00a0expand the scope of existing programs\u00a0designed to help Australians buy their first home.<\/p>\n

READ MORE VIA NEWS.COM.AU<\/a><\/p>\n

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