There are now clear signs that the message about housing affordability is getting through, the Residential Development Council (RDC) announced last week.
The RDC has been warning for over a year now about the relationship between land supply, housing taxes and infrastructure levies, and the price of new housing. This has been supported by a campaign that has included a series of research pieces, ongoing advocacy with key political opinion leaders around the country and a segment on "Today Tonight" in August.
By the middle of August, outgoing Reserve Bank Governor Ian McFarlane was telling a parliamentary economics committee that new home buyers were being slugged by state government policies.
"It's pretty apparent now that reluctance to release new land, plus the new approach where the purchaser has to pay for all the services up front, is having an effect," Mr McFarlane said.
"I think there is an issue that state governments will have to look at," he said.
That view was endorsed by the Prime Minister John Howard who said that "until state governments around Australia start releasing more land and stop using the development process as a method of raising revenue, we will continue to have a problem with the affordability of housing."
Ross Elliott, RDC's Executive Director, said last week that the South Australian Premier has since promised to release more land for housing growth, as has the Northern Territory Planning Minister.
"The West Australian government has also vowed to look at supply line blockages, but regrettably also increased DA fees in the process," said Mr Elliott.
The Council has announced it will shortly be releasing a detailed national study on the land supply problem.
