Treasurer Scott Morrison promises to mitigate housing affordability crisis

Newly appointed Treasurer, Scott Morrison plans to announce reforms to restructure the hot Australian housing market, which he believes, will help ease the financial burden of the first buyer struggling to cope with the affordability crisis.

Morrison’s response has been compared to that of former Treasurer Joe Hockey, who gave the following advice on the same issue. “Get a good job,” was his answer, which had many frowns of disapproval.

"There's a really big regulation modernisation agenda for the housing sector and that can really improve competitiveness and efficiency," Morrison said in an interview with Fairfax Media, citing that the biggest competition inhibitors was the housing market.

Demand for new houses and improved housing conditions have increased, with supply remaining flat over years. In the past, home-buildings have risen but the ratio is still very less when compared to the existing demand. Also, population in the continent has risen. The huge difference between the demand-supply ratio has resulted in stretching of the housing prices. Morrison has pledged to lower the high price range to make housing more affordable.

"If you've ever tried to add an extension or build a house you know what has to be done," Morrison said. Although the state governments are to take responsibility in such cases, he felt that it required national leadership.

He tried to bring the issue of housing problem to the meeting of state and federal leaders under Tony Abbott's prime ministership back in July. "The last leaders' meeting was quite a turning point; housing previously hadn't been on the agenda," he added.

As Morrison headed the social services portfolio, he wanted the pricing issue on his agenda because the home price surge was having catastrophic effect on social and affordable housing, thus resulting in homelessness. State and federal governments in Australia reportedly spend nearly AU$11 billion annually on such policies.

Now, Morrison intends to push the issue as an economic reform. He also pinpointed the job surge in the construction sector, which indicated a potential growth in building and construction, and felt that regulatory constraints should be brought under review so that the industry is given more scope to thrive in a better competitive environment.

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