SKYROCKETING home prices across Victoria is sparking calls for a major investment in social and affordable housing to balance the runaway growth.
Melbourne home prices increased 1.8 per cent in May to post extraordinary quarterly growth of 5.5 per cent in Melbourne. In Regional Victoria they increased by 1.7 per cent for a quarterly rise of 6.2 per cent.
National campaign to end homelessness, ‘Everybody’s Home’, has speculated the market’s vast increase would price many out while generating unsustainable debt for many new purchasers.
“The best solution to this runaway housing market is an expansion of social and affordable housing,” said campaign spokesperson, Kate Colvin.
“We need to release the housing pressure by giving more options to those who can’t participate in the boom. Cheap money is like rocket fuel for house prices. Unfortunately, this inevitably leads to higher rents, unsustainable debt loads and worsening affordability.”
“Social and affordable housing is a big part of the answer. It can moderate the effect of higher house prices and higher rents by giving those on low and modest incomes a realistic alternative.”
Local real estate agent, Rocky Gagliardi, has reported how the demand for rentals is unprecedented.
“Not only has the buying market boomed, the demand for rental properties in our region has intensified.” said Rocky.
