PIPA: Governments scapegoating investors for ‘bloated’ social housing backlogs

May 2024Karen Millers

The Property Investment Professionals of Australia (PIPA) asserted that state and federal governments are “using private investors as a scapegoat” for the housing crisis despite inadequate investment in social housing.

They stated that governments are “passing the buck” on the rental affordability crisis by failing to meaningfully increase the country’s housing stock of 430,000 social housing dwellings.

“If you want to know why Australia is in such a mess and why so many can’t afford a home, you only need to look at how much the population has grown and the sharp rise in people in need of support and compare it to investment in social housing,” said PIPA chair Nicola McDougall.

As of 2022, social and affordable dwellings made up 4.1 per cent of total housing stock in Australia, according to the Australian Institute of Health and Welfare.

In NSW, social housing is 4.7 per cent of all housing stock; in Victoria it makes up 2.9 per cent of housing, in Queensland it’s 3.5 per cent, and in Western Australia it’s 3.9 per cent. Each of these figures reflects an overall decline over the past 10 years.

During the 2022–23 financial year, the Australian Taxation Office (ATO) recorded $68 billion in property taxes paid to governments, including stamp duty and excluding the capital gains tax.

In the same period, PIPA stated “governments invested just 1.4 per cent of total revenue into housing and community amenities, according to the ATO”.

Meanwhile, 35 per cent of people seeking urgent government assistance have been turned away.

Using Victoria as a case study, PIPA stated that the Victorian government boosted its social housing stock by just 74 dwellings in the four years to 2022.

“During that same period, the bloated waiting list of desperate Victorians needing a roof over their heads has surged to 57,672 households,” said McDougall.

“While talking about fixing the housing crisis, some major state governments have been quietly selling off social housing stock to make a profit, leaving people out in the cold,” PIPA asserted.

“Instead of offering meaningful solutions, getting desperately needed supply into the market and supporting those in the community doing it toughest, governments are passing the buck,” McDougall concluded.

Originally Published: Orana Durney-Benson | Real Estate Business | 29 May 2024


Licensed by Copyright Agency. You must not copy this work without permission.

We strive to bring accountability, ethics, and education to the property investment industry.

PIPA exists to improve the professional standards of anyone providing property investment advice to consumers. Our voluntary Code of Conduct means that members adhere to a high set of professional standards to help protect consumers. Qualified Property Investment Advisers (QPIAs®) have the highest form of industry-recognised, specialist training and can be trusted to provide tailored and unbiased advice to consumers.

PIPA also regularly produces research, analysis, and publications to help educate our members, media, and consumers about the property investment sector.

By signing up for our newsletter, you will gain access to two of our most valued resources – the Annual Investor Sentiment Survey report and the quarterly PIPA Adviser e-magazine.

2023 Investor Sentiment Survey

The Annual PIPA Investor Sentiment Survey is a rare snapshot of the buying intentions of property investors.

PIPA Adviser Magazine

The PIPA Adviser provides the latest research on market conditions, including forecasts for next year.