To read the full release, CLICK HERE
Urban Taskforce CEO, Tom Forrest today said the RBA had struck a bitter blow upon new home buyers and renters. They are a disaster for housing supply.
Worse, today’s interest rate rise of 0.25%, taking the cash rate to 3.85%, will flow through to undermine project feasibility, meaning that fewer new homes will be built. Ironically, this
will exacerbate the current undersupply and result in greater inflationary pressure through higher home prices and increases in rents.
The key message here for the nation’s Treasurers is they must target their housing initiatives on stimulating housing supply and stop pump priming with handouts to new home buyers.
Handouts are always politically popular but, without an increase in housing supply, they push prices up further.
Treasurers across Australia are currently considering measures to boost housing through the 2026/27 budget cycle. These measures must be focussed on easing the cost of delivering
new homes, thereby improving project feasibility and stimulating housing supply.
To read the full release, CLICK HERE