Housing Affordability and Planning in Australia: The Challenge of Policy Under Neo-liberalism

Housing affordability has once again appeared on the policy agenda of Australian governments. House prices have risen in response to booming demand and constraints on the supply of dwellings, especially a shortage of land in the capital cities and skill shortages within the housing industry. Many young and low-income households have experienced great difficulty in gaining access to homeownership and in being able to afford private rental housing. This paper briefly considers the characteristics of public debate around housing affordability in Australia. It examines the role of neo-liberalism in shaping policy responses to housing affordability problems and assesses the argument that affordability goals can be achieved through manipulation of the planning system. It contends that neo-liberal philosophies of government direct policy action to the planning system, but such strategies have a limited capacity to improve housing affordability. Australian governments need to adopt more effective housing policies if they are to meet the needs of the 700 000 to 1 million households who live in unaffordable housing.