Housing 'lost' in reform agenda: HIA
The Housing Industry Association (HIA) has lashed out at governments across Australia, saying the reform process to get a greater supply of housing needs a "rocket" under it.
HIA, in its latest National Outlook, forecasts a 13 per cent drop in home building starts over a two-year period, 2010/11 and 2011/12, reaching an annual low of 143,700 units.
HIA chief economist Harley Dale says this will be the lowest level of housing starts since the mid-1990s, excluding two recessionary periods for the industry during the introduction of the GST and the global financial crisis.
"Housing is shelter, a true essential of life," Dr Dale said, releasing the report on Monday.
"It is disappointing to see such an economically and socially vital element seemingly absent from serious public policy debate in this country."
He says sentiment and activity in the new housing industry has been buffeted by higher interest rates, continuing tight credit conditions, "incessant chatter about a fictitious property bubble" and a high tax burden.
There has been a lack of progress on policy reform to reduce unnecessary new-housing costs, he said.
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