|NEW MODELLING INDICATES:
Source – Supporting Economic Recovery in NSW, Equity Economics
The forecast drop in international migration will translate to reduced demand for housing
of 38,500 units over 2020 and 2021 – the equivalent of an entire year of residential housing construction in NSW. As a result:
- up to 85,000 jobs are at risk in the residential construction sector across NSW over the next 18 months
- 97,000 SMEs dependent on residential construction are at risk of not reopening their doors in NSW without additional investment
- Rising unemployment is projected to increase homelessness by between 7,905 and 16,140 people in NSW
- Increased homelessness is estimated to cost between $218 million and $445 million each year due to higher health and social service costs
Having a roof over your head and a place to call home are basic human needs and something becoming increasingly difficult to achieve for many in an ever-growing Sydney. The economic impacts of Covid has accentuated and expanded the number of people in need of affordable and social housing and potentially changed population growth and distribution. It is therefore timely that The Hon. Melinda Pavey, Minister for Housing, Property and Water Melinda Pavey has released the NSW Housing Strategy Discussion paper
Looking to 2040 the Strategy will shape the future for Sydney’s housing and centre on the key challenges of housing supply, diversity, affordability, and resilience. Housing is not only central to the lives and livelihoods of the people of the State but its availability, accessibility, and typology shapes communities and the Cities. The economic benefits of housing through connectivity and proximity to employment is critical to support jobs growth, productivity and supplying the talent for business and stimulating housing development and construction jobs will help drive a pathway through our current economic challenges.
The dynamics and consequences imposed by the COVID crisis make it all the more crucial for the State’s Housing Strategy to capture, create and deliver greater certainty in our current circumstances.
Aging population, population growth and the fact that it takes fifteen years of average earnings to purchase a home in Sydney together with generating a housing pipeline in the right places and providing pathways to home ownership are all critical factors that must be addressed.
While our migration numbers are changing, pre-Covid it was estimated that by 2041 there will be a need for one million new homes in Greater Sydney and a further 290,000 new homes in regional NSW. Having sufficient flexibility in the Strategy to accommodate this uncertainty will no doubt be a critical challenge.
Delivering the right houses in the right places requires collaboration – across local and State Government and between the public, private and not for profit sectors as well as operate within the context of Federal Government social and economic policies. Now is the time to further forge those collaborations as well as address the interconnected critical issues of new delivery models, streamlining procurement, transport connectivity, infrastructure contributions and stamp duty versus a land tax.
Consultation on the NSW Housing Strategy - Discussion Paper
is open to 24 July 2020 and Sydney Business Chamber encourages members and stakeholders to make a submission. We also welcome your input and comments to inform our submission to Government. email firstname.lastname@example.org
Sydney Business Chamber held an online forum with The Hon Melinda Pavey MP, Minister for Housing, Water and Property on 7 July 2020.
Media contact: David Peters 0413 872 491
Sydney Business Chamber is dedicated to creating, advocating and promoting Sydney as a City of Opportunity – a global city to Invest, Work, Live and Visit. Our program is based around the key issues of city building, business transformation and innovation. Please share this article and visit us here to find out about becoming a Member.
Recommended Reading: State of the Economy – ‘The back-to-front recession we had to have.’