2022 Budget to Address Australia’s Worsening Housing Crisis with Focus on Affordability, Skilled Workforce, and Construction Delays

In response to the worsening housing crisis in Australia, the government is expected to outline measures in the upcoming budget aimed at improving affordability. Treasurer Jim Chalmers is set to present the budget on Tuesday, which will reportedly focus on addressing the issue. The government has previously pledged funds for training 20,000 local workers for the construction and housing sectors, as well as streamlining skill assessments for potential migrants. However, developers and housing advocates have urged the government to allow foreign skilled construction workers to enter the country via a new fast-track visa stream, as the shortage of such workers has contributed to delays in new build projects. The National Housing Supply and Affordability Council (NHSAC) has highlighted a range of factors contributing to the shortfall of housing stock, including high construction costs, skills shortages, labor supply constraints, rising interest rates, and weak consumer confidence. As a result, annual house price growth continues to exceed wage growth, leading to record-low rental vacancies, lengthy waiting lists for social housing, and homelessness. The NHSAC warns that these challenges could impact broader economic productivity due to reduced disposable income available for personal investment.