Saturday, October 18, 2008

Record immigration exacerbating WA's housing affordability crisis

From WA Today:

Immigrants put pressure on WA house prices

Vanessa Williams
September 25, 2008

Western Australia has seen the highest influx of immigrants in the nation, putting even more pressure on housing affordability, according to the Housing Industry Association.

Figures released from the Australian Bureau of Statistics show WA recorded the highest growth in Australia in the year to March, with 52,000 people flocking to the state.

HIA chief executive of policy Chris Lamont said the population growth led to less affordable housing.

"We need to look at the growth in population," Mr Lamont said.

"The mining boom is not going to continue and housing is going to be in critical demand."

The First Start shared equity program - a scheme whereby state government contributes to the home-buyer's mortgage - has been suspended due to a fund blow-out.

With Premier Colin Barnett not yet committing extra funds to the programme, Mr Lamont believed that the state government needed to urgently review the situation that many first home-buyers now faced.

He said one solution would be to reduce statutory charges with new housing.

"My suggestion to the WA state government would be to boost the supply of housing affordability and focus on supply," he said.

"However, it is a solution that will require both the state and the federal government to work together."

Original article

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