Yahoo Finance Budget 2022: 1 million new homes to fight housing crisis
The 2022 Labor Federal Budget has unveiled a bold new change to the property sector, with a plan to see 1 million new homes built, to help ease the heated market.
Treasurer Jim Chalmers announced the Budget was looking to encourage the big banks - Commonwealth Bank, ANZ, NAB and Westpac - as well as superannuation funds to invest in social and affordable housing.
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The plan will also bring together state and federal governments, along with the private and construction sectors.
The aim is to try to cool the housing market which, while currently cooling slightly, hit a fresh high in February this year.
Under the new plan, the Federal Government would support an additional 10,000 affordable homes over the next decade, costing the budget $350 million.
States and territories would be expected to deliver the same number of homes for low- to middle- income households.
Overall, the plan aims to have 1 million new homes built by 2029.
Property prices through the roof
The change comes as housing affordability is a major roadblock for many Aussies looking to enter the property market.
While rising interest rates have worked to bring property prices down, Australia still has one of the most expensive housing markets in the world.
The Reserve Bank of Australia recently estimated property prices could drop as much as 20 per cent thanks to its rapid interest rate hikes.
But the median cost of a home in Sydney is still a whopping $1,053,131. A 20 per cent fall would only bring that down to $908,255.
In Melbourne, the median home value is $774,531. A 20 per cent fall would bring that down to $638,625.
The median price of a home in Brisbane is currently $746,017, while in Adelaide it’s $649,983.
The median home price in Perth is $558,879 and in Hobart is $705,079.
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