Housing Crisis

The Hon. ROD ROBERTS (21:08:22):

I move:

(1)That this House notes with concern and urgency that:

(a)all New South Wales residents should have access to suitable and affordable accommodation;

(b)housing should provide a level of security or tenure, be affordable, habitable and provide for at least the basic needs of the resident; and

(c)the issues relating to access to housing are not limited to the homeless who sleep rough on our streets but extend to those struggling to find rental accommodation or affordable premises to buy.

(2)The House further notes that:

(a)successive governments have failed to provide long-term solutions;

(b)successive governments have failed to establish a long-term plan to protect our State from falling into the critical state of housing accessibility that it currently finds itself in;

(c)there is no single measure that can address all the issues;

(d)although some elements such as immigration or population growth are out of the control of a State government, the risks were foreseeable and should have been included in the planning;

(e)cooperation between all levels of government and relevant stakeholders is required to address this issue as the most pressing and urgent challenge of our time;

(f)a lack of access to housing threatens the State economy;

(g)a lack of access to housing threatens business sustainability and growth by limiting the availability of workers, full‑time or seasonal; and

(h)a lack of access to housing hinders recovery capacity following natural disasters.

(3)That this House calls upon the Government to make the housing crisis in New South Wales their number one priority and establish both a plan to address the urgent needs of those in crisis and a long-term plan to ensure future generations are not dealing with this problem.

I bring the motion with a real sense of urgency. Members have heard the words "crisis" and "emergency" in relation to ideologically based positions on many occasions, but the crisis I speak about is real. It is not a potential or a perhaps; it is happening right now. It is the housing crisis. New South Wales is in the grip of a real and dire shortage of housing, not only on the affordability scale, but also, and more concerningly, on the availability scale. It affects both potential house buyers and renters. The severity of the crisis is recorded in record low vacancy rates for rental availabilities.

The Hon. Rose Jackson:

It is an important issue.

The Hon. ROD ROBERTS:

I acknowledge that interjection. The demand for rental accommodation is causing a shortage of properties, resulting in a surge in rent. In turn, this is making it more difficult for families to afford housing amid growing cost-of-living pressures, with rent increases outstripping growth in wages. Having a roof over one's head is a priority for all, but clearly there is a severe lack of availability of homes. There is not enough supply of new homes to meet demand. Traditionally, housing affordability and availability issues are usually confined to Sydney. However, the COVID-19 pandemic triggered an exodus from Sydney to country areas. With the increase in working from home possibilities, people fled the city in search of space and fresh air, putting the squeeze on an already tight market.

At a recently held business lunch, Harry Triguboff of the Meriton Group lamented the struggle to gain planning approval for new builds, saying, "At present you cannot build in the State of New South Wales. I promise you, if I can't, nobody can." At the same gathering, Adrian Pozzo, chief executive of Cbus Property, agreed that the lack of supply was because of planning issues. He said, "You can put these developments in front of councils and it normally takes two to three years." Local councils and their planning departments need to become emboldened and warm to the idea that increasing density might be the answer to dwelling shortages, which in turn may lower housing costs.

Remember the law of supply and demand. Councils need to reject the complaints of nimbys who do not want to share with more people living where they live. This can only be done with support from the State Government to provide much-needed infrastructure to offset the increase in population. Previously the State Government built, held and rented out a large number of public dwellings across New South Wales. Over time, for various reasons, the amount of these homes has diminished and the Government has subcontracted the provision of rental accommodation to private investors. As we know, there is still a great shortfall in the number of homes required, and further initiatives need to be taken to encourage large-scale developers to build more dwellings.

The shortage in regional areas has exacerbated the worker shortage. Businesses are struggling to attract staff as prospective workers are priced out of the market or find there are no homes to rent. This is having a major impact on the labour market and hurting the economy of metropolitan and rural New South Wales. It is not just rent that has soared in regional areas, with evidence of a huge surge in home values also limiting the options for workers wishing to take up opportunities in the bush.

Overlay that with the Federal Government's recent announcement of a lift of the migration cap to 195 places per year. I note that this move has been encouraged and applauded by Treasurer Matt Kean. But those of us who are pragmatic and realistic and engaged ask, "Where will they live?" We know that more than one-third of these migrants will end up in New South Wales, yet we cannot house the people that we already have. It is a simple matter of logic that increasing the population without a corresponding plan to build more houses will worsen our housing affordability woes.

I do not have the simple answer to this complex problem. I do know, however, that what we are doing at present is not working and the prognosis for the future is bleak. We must accelerate the building of new dwellings. To do this, we may have to review existing planning laws and put in place incentives that slash red tape and speed up approval times. We can also look to existing zoning provisions to encourage a greater diversity of new housing. Perhaps, too, we may have to stimulate greater investment via financial incentives. I seek an extension of time.

Leave granted.

The Hon. ROD ROBERTS:

I thank the members in the Chamber for their latitude. Perhaps we may have to stimulate greater investment via financial incentives encouraging developers to construct more dwellings. What this looks like, I do not know exactly. Perhaps no stamp duty or land tax will be payable on build-to-rent accommodation. I know that small incentives are presently available in this area, but clearly they are not enticing enough to stimulate great interest from developers and builders. Perhaps income tax reductions will be provided by the Federal Government to encourage more investment.

Time expired

There are trillions of dollars sitting in Australian super funds. Instead of investing this money in large‑scale infrastructure such as toll roads, perhaps we need to provide incentives such as tax-free thresholds in land tax to get those funds to invest in build-to-rent portfolios. Before the socialists get up in arms about providing more incentives to private investors, I point out that the Government is not building so you need someone to do the heavy lifting, and that leaving the status quo unchanged will not fix the crisis. I note the time and I look forward to other members' contributions on this vital topic. I will make further remarks in my reply. [.]

The Hon. AILEEN MacDONALD (21:15:05):

The Liberal-Nationals Government acknowledges and understands the housing crisis facing not only metropolitan Sydney but also regional New South Wales. We are using all levers available to government to address the issue. The Accelerated Infrastructure Fund is one of the New South Wales Government's most successful funding programs, with the first two rounds seeing almost $215 million worth of State investment, unlocking the potential for more than 100,000 new homes and almost 700 hectares of employment land.

We are building on that more than ever before. Councils experiencing high growth over the next decade are currently eligible to apply for a share in up to $300 million in the third round of funding, with applications closing at the end of the month. These areas have been selected as projections show they will account for 94 per cent of the State's population growth over the next 10 years. These job-generating projects will mean new homes will be quickly connected to the local roads, open spaces and stormwater infrastructure that they need to function. Some $120 million of the Accelerated Infrastructure Fund will be specifically allocated to our highest growth regional areas because we know our coastal and inland areas are experiencing pressures like never before.

In response, last year the New South Wales Government introduced the Regional Housing Taskforce and recently released our response to its findings, outlining how it will address those findings. As an initial response to the task force's findings, we set up the $30 million Regional Housing Fund to immediately start helping regional councils that are experiencing housing stress, and to fast-track the supply of shovel-ready land for more homes. Twenty-five projects from 21 councils have been approved for funding to help deliver new roads, sewerage upgrades, stormwater works, park upgrades, community facilities and open space.

Our regional housing response is backed by the $2.8 billion housing package. It will help us unlock 127,000 new homes in our regions over 10 years, remove housing barriers for key worker groups and Aboriginal families and, as I said earlier, support high-growth areas so they can build much-needed infrastructure. Up until 30 September, all regional councils can apply for grants of up to $250,000 from our Regional Housing Strategic Planning Fund. The $12 million fund will be rolled out over the next four years to help councils. I will conclude my remarks by saying we support this important motion moved by the Hon. Rod Roberts.

The Hon. ROSE JACKSON (21:18:14):

We know something is a pretty urgent crisis when it has One Nation and the Labor left absolutely singing from the same song sheet—indeed, we are. I commend the Hon. Rod Roberts for this motion. It is an excellent motion and I commend him for an excellent speech that raised a range of issues that are absolutely urgent for this Parliament to address. New South Wales truly has a housing crisis and those who do not know that have not been listening to the tsunami of correspondence that Labor members have been receiving from people about the dire housing stress that they are in. If you do not know that, you have not been on social media where people are using local community buy, swap and sell groups to plead with their neighbours for housing. Those groups are inundated with people, particularly in regional New South Wales. They are saying, "Please, does anyone have a tent for me and my kids to live in? I have a job. I have references. I cannot find anywhere to rent."

Four Corners

If you have not heard this, you do not watch TV and did not see the excellent investigative report on that was focused on Coffs Harbour, where there is story after story about the constituents of our State who we represent. These are people who have jobs. There are people like Kayla, who is a single mum raising two kids. She works almost full-time in a tavern in Bellingen. She earns $750 a week. She does not do drugs; she is not a bad person. She is just trying to put a roof over the heads of her two kids, and she cannot find a place.

As the Hon. Rod Roberts said, it is not just an affordability issue; it is an availability issue. There is simply not enough affordable housing in New South Wales. There are so many levels to this that we need to address, and it is great that we have the opportunity to talk through them in this Parliament in the form of motions and other things. We need to improve the security of tenure for renters. The idea that someone can be kicked out of their property, where they have signed a lease, paid their rent and done nothing wrong, is not acceptable. They are told, "Get out. You have got 90 days to find a new place." They cannot find a new place, and they are then living in a tent or in a car. The property comes back on the market two weeks later with the rent jacked up by $100. It is not acceptable.

Time expired.

We need to address the issue of the availability of social housing. This Government has completely failed to invest in social housing. The Government is far from doing everything it can. We are going backwards in terms of the availability of social housing in this State. It is not just about renters and social housing; it is about affordable housing. We are talking about people with jobs who are not eligible for social housing. They are working people and they cannot find anywhere to live. We are talking about young professionals with two incomes who cannot find a place to live in Sydney and many regional towns. This issue is big; it is complex. Almost every speaker has run out of time but I commend the member for moving the motion. []

The DEPUTY PRESIDENT (The Hon. Wes Fang):

Before I call further speakers, I acknowledge that we have mayors, councillors and general managers from the Central West, Lachlan Shire Council, Oberon Council and Cowra Council in the gallery. I welcome Councillor Ruth Fagan, John Metcalfe, Bill West, Andrew McKinnon and Greg Tory to the Legislative Council, the House of decorum and review.

The Hon. LOU AMATO (21:21:53):

The Hon. Rod Roberts' motion states that everyone in New South Wales deserves access to suitable and affordable accommodation. The New South Wales Government could not agree more. Having access to a safe place to call home also means that the people of New South Wales can pursue health, education and employment opportunities, which strengthens our communities and allows us to thrive. The 2022 budget's $2.8 billion for housing is targeting resources where they are needed most, making all individuals and families feel valued. This follows a long history of investment in social housing in New South Wales, which has grown to around 157,000 properties. This is the largest in the country and is equal to the Queensland, Victoria and Australian Capital Territory portfolios combined. It is also helping to achieve the Premier's Priority to reduce street homelessness and halve the number of people sleeping rough across New South Wales by 2025.

Over the past five years, the Government has invested $9.3 billion in social housing, which is 32 per cent of the national total of $29 billion. As a result, social housing across the State has increased by 9 per cent over 10 years, which is well ahead of the national figure of 4 per cent. Since 2020 the NSW Land and Housing Corporation has secured over $1.3 billion in new funding for social housing. This includes $868.1 million as a result of the COVID-19 pandemic, which included $200 million to upgrade more than 12,000 social homes. The $2.8 billion housing package is building on that. As part of the $554 million investment in providing new and upgraded social homes, $300 million is being allocated over the next three years to support vital upgrades to almost 16,000 of those homes.

These works will enable the Government to continue to improve property condition, quality and thermal comfort; and reduce future maintenance costs and the cost of living for tenants. This will go a long way to ensuring that tenants continue to have a safe, healthy and well-maintained place to live, which is especially important for an increasing cohort of people who are older or less mobile. It will also protect around 455 homes from becoming unliveable and support around 900 construction service jobs. A further $37 million is being invested in the Together Home Program, which partners with 18 community housing providers to link rough sleepers with stable accommodation. This work is being led by the Department of Communities and Justice.

The New South Wales Government also continues to honour its commitment to Close the Gap for meaningful reform and target investment centred on cultural understanding and regular consultation. Over the next four years we are allocating $149.8 million to deliver 200 new culturally appropriate homes for Aboriginal families and 260 significant upgrades to properties across the State, including regional areas like Menindee, Broken Hill, Coonamble and Cobar. The delivery of those homes is expected to create 669 construction-related jobs and employ at least 132 Aboriginal people across regional and remote New South Wales. The New South Wales Government is tackling the housing crisis. We are pulling all levers at our disposal. We support the motion.

The Hon. MARK LATHAM (21:24:54):

It has been a high-quality debate with good speeches. Yes, we agree with the Labor Left when they come up with sensible solutions. The matter reaches a point of consensus and agreement around the Chamber because New South Wales is very much in the middle of a genuine housing crisis. I do not use that word lightly. This has so many dimensions to it that the crisis is playing out in real-time. It has supply shortages, which are critical. Even in Palaszczuk's Queensland, land developers can get a decision one way or the other within six months. That is where the money is flooding out of New South Wales. Streamlining and fast‑tracking the development approval process is critical in New South Wales. Some of the blockages in Sydney are horrendous. Getting improved densities on the North Shore of Sydney is one for the teal‑type agenda to have a crack at. Parramatta, Leppington and Pagewood are a blackhole for any form of development progress.

The Hon. Rose Jackson:

You can't get sewerage.

The Hon. MARK LATHAM:

You cannot get sewerage; you cannot get approval. That is an obvious challenge for a government that has neglected the supply side. On the taxation side, the Government does recognise now that stamp duty is a horrendous tax. It is a tax on mobility and we have become a more mobile society, a more mobile labour market. That is something for Labor to take on. We are so much more mobile in the labour market, in our housing choices and in our job and schooling choices as families, why would we want to tax mobility?

The Hon. Damien Tudehope:

We don't.

The Hon. MARK LATHAM:

You don't? Well, the Government has been slow to get on to it. I prepared a motion last year to say that the support was in the Chamber and I have been urging various Government head honchos to get cracking with it. The final issue is a cost question. In the delusional flood to think New South Wales can save the planet, according to Tom Forrest at the Urban Taskforce, BASIX and all the development assessments—the various biodiversity schemes and the like—are adding $100,00 to the cost of building a new home in Sydney. That is such a prohibition on housing affordability.

If we fix the supply, fix the taxation issues and fix the cost issues we will start to move towards a solution to the crisis. In various iterations around the Chamber that package can be put together and it would be workable. Everyone should reach a bit of bipartisanship here. I know there is an election coming up. I will even have my name on the ballot paper. The One Nation housing solution will be foremost in practical answers to this crisis and I hope it is embraced across the political spectrum.

The Hon. SCOTT BARRETT (21:27:45):

The New South Wales Government wholeheartedly understands that the housing market is facing a climate where demand is outstripping supply and affordability. We thank the honourable member for bringing the motion to the House. We also know that housing is particularly unaffordable for young people, people in our regions and people in need. This challenge is getting worse as our population rapidly changes and grows. Tackling this issue is a big job, as acknowledged by the honourable member. There is not just one single lever to pull to fix this issue, but many different things need to be done.

The 2022 budget included a $2.8 billion housing package. It is the largest injection the New South Wales Government has made in decades into creating a pipeline of more homes over the long term. Over the next four years that package will include almost $500 million to unlock land and supercharge housing supply; $554 million for new and improved social and Aboriginal housing; and $174 million for key worker housing. There is also money for strategic planning to help councils map out ways that they might be able to contribute to fixing this problem, and also support to assist with approval backlogs.

It is one thing to stand in this place and talk to each other and think that no-one is listening, but when your key stakeholders are sitting in the room it adds a little bit more pressure. I acknowledge the mayors and councillors that we have with us here tonight. I have worked with a few of these people. I am hearing from councillors, mayors and general managers that the housing crisis is having a flow‑on effect on the ability to attract people into these towns. They cannot get staff to move to their towns because they cannot get housing.

At Nyngan, through the Resources for Regions fund provided by the New South Wales Government, the council has been able to build a few houses for doctors' accommodation. That sort of diverse thinking is what we need here. I also have to acknowledge the mayor of Lachlan Shire Council, John Medcalf, and its general manager, Greg Tory. We have spoken about a few of these things. We need to look a little bit more closely at what we are doing around biodiversity offsets. That is causing a particular problem in regional areas. I stand here committed to help councils in those regional areas to work through some of those problems moving forward. It is a particular problem in regional New South Wales. The Government acknowledges it is a problem, and that is why we will continue to work on it. The housing issue is a key factor contributing to homelessness, particularly among older people. This is acknowledged in a report into homelessness that I and others in the Chamber have been working on, which is to be released soon. The housing crisis is an important issue and we thank the member for bringing this motion on for discussion.

The Hon. ADAM SEARLE (21:30:39):

I outlined some ideas to deal with housing on 20 September in this Chamber and I now make a contribution in this debate. I wholeheartedly support the words and the sentiments in the motion, but I would like for members to not focus attention on the issue of supply alone. It is an important part of the equation, but it is not the only part. I say that because when I was the shadow Minister for Planning I regularly met with development interests and they would tell me, quite proudly, that up to 70 per cent or more of their product was actually bought by investors, not by people intending to live in their own home. The combination of tax advantages for investors is working against people—particularly young people—who are trying to get into the housing market. That is not to say anything against investors. But we have, in one part of the economy, turned a lot of our available housing stock into a product that is bought and sold for profit. That is perfectly legal and fine, but the upshot is that it is one of the things that has caused upward pressure on housing prices.

So, yes, we do need to have adequate levels of stock, but we also need to make sure that key workers and people in that same set of incomes are able to realistically access a decent proportion of the housing stock that is constructed or is otherwise available. It cannot all fall into the hands of investors. Investors have a role in the market, but we cannot have that role deny the next generation of Australians, of New South Wales residents, their part of the Australian dream—to own their own home. We all know that one of the major determinants about whether people slip into poverty in older age, particularly women, is whether they own their own home. I have three children, and it is a regular conversation that they will not be able to afford a home. My daughter is a nurse. She will be earning a good living, but she will not be able to live in the city of Sydney.

This is a real and pressing problem for all of us, and we all betray the next generation if governments do not meaningfully intervene in the market. It cannot all be fixed by the market. The market is broken, because the people with means are advantaging themselves. We need to make sure that there is an adequate part of the housing stock of this State that is realistically available to people on realistic incomes. That is a challenge that we all must face. Council approvals of new dwellings is another part of the equation. But historically approvals have often outstripped the construction of new dwellings. So the problem is not in new land releases and new approvals. We have to make sure that all of the mechanisms are in place for new home purchasers.

The Hon. DAMIEN TUDEHOPE (Minister for Finance, and Minister for Employee Relations) (21:33:49):

I share the observation of the Hon. Mark Latham that all of the contributions to this debate have been significant. I also acknowledge the relevance of the proposition which has been brought here tonight by the Hon. Rod Roberts. It is an issue that must be dealt with and it is multi-faceted. Every single contribution has identified a component of the problem. I will make a few observations on what has been said. First of all, the Treasurer is hoping to bring a shared equity scheme bill to the House to potentially make sure that more people have an opportunity of getting into the market.

The cohort that the Hon. Adam Searle identified is the target group we are hoping to assist in getting into the housing market where they may not otherwise be able to. I hope the scheme is embraced by members on both sides of the House. The Hon. Rose Jackson made quite a play in relation to the dearth of rental properties. She would go so far as to potentially amend the Residential Tenancies Act. I anticipate she would embrace some sort of prohibition against no-fault evictions and the like. I get all that; that is part of it. But investment properties are generally occupied by renters and so on the question of stock, we need to encourage the investment market because there is a home ownership market and a rental market and all of that goes to making sure that we have availability of sufficient housing stock.

I come back to the Government initiative on property choice and stamp duty. One of the biggest impediments to people getting their own homes has been stamp duty and the impost that puts on them. The shadow Treasurer said that his parents owned their home all their life. I am sure that may well have been right, but he said, "I wasn't alive in 1979 and I don't know how the market has moved in that time." I was alive in 1979. I was struggling to buy my own home in 1979, and I would have welcomed an opportunity of not having to pay stamp duty. Now is the opportunity to say that we can do innovative things and embrace the choice that first home owners should have.

The Hon. Mark Buttigieg:

What? Push house prices up?

The Hon. DAMIEN TUDEHOPE:Time expired

That is rubbish; the honourable member knows that is rubbish. If one was to apply for a loan, it is all predicated on their ability to repay. [.]

The Hon. NATASHA MACLAREN-JONES (Minister for Families and Communities, and Minister for Disability Services) (21:37:04):

This debate is very important, particularly as a bipartisan approach. I acknowledge the contributions of the Opposition and the crossbench. I also acknowledge the mayors who are in the Chamber. That is important because tackling the housing crisis across New South Wales and the whole of Australia is all our responsibility as local, State and Federal governments. I note that New South Wales is leading the charge, particularly when it comes to social housing. We have over 154,000 properties. The next State is Victoria with 76,000 properties.

That is because over a decade ago the New South Wales Government invested over $9 billion to ensure the delivery of more social and affordable housing across the State. That is working in partnership with community housing providers, local government and other organisations to ensure that the properties are available. That was not just social housing but also affordable housing. Only last week I was out with Alex Greenwich in Potts Point announcing a 16-unit property which will provide affordable housing to essential workers living in the city. But that is happening across the board. Whether it is regional areas like Tweed, the South Coast, Orange or Dubbo, the Government has been announcing properties because we made that investment over a decade ago, and we continue to do so.

The Hon. ROD ROBERTS (21:38:29):

In reply: I thank the Hon. Aileen MacDonald, the Hon. Rose Jackson, the Hon. Lou Amato, the Hon. Mark Latham, the Hon. Scott Barrett, the Hon. Adam Searle, Minister Tudehope and Minister Maclaren-Jones for their contributions. It appears there is a consensus that something needs to be done and it needs to be done urgently. We only need to live in the world of reality to know how serious the housing crisis is. Every day when we pick up the newspaper or turn on the TV and watch the news, we know it is an issue.

We are deluding ourselves if we think this crisis will be rectified without changing our current thinking. What we are doing at present is not working. I listened closely to the contribution of the Hon. Adam Searle. I ask members to imagine a working family living in the western suburbs of Sydney. Let us say dad is a labourer in a factory, perhaps earning $80,000 a year. I really don't know, but let us just assume $80,000. His wife is a good, hardworking woman, perhaps working as a register operator at Woolworths. Again, I don't know what they get, but let us assume it is $50,000. They are good, genuine, hardworking people. They have three children and are living in a home for which they pay rent of perhaps $600 or $700 a week. How will those people ever be able to afford to enter our housing market unless somehow there is some intervention? Those people deserve a roof over their heads.

Earlier in my contribution I said that this matter requires the cooperation of all levels of government and the private sector. I said I do not have the answer. But I would like to give the Leader of the Government in this House a bit of a clue. I do this in all seriousness and with all due respect. Recently in the Federal sphere a jobs summit was held. Whether we needed that is up for debate. I do not think we did, but I tell members what we do need, and that is a housing summit. I call upon the Government to host the summit, bringing together local, State and Federal governments, because the issue is not solely within the sphere of State governments; it involves all tiers of government. They should be brought together with local council planners, the planning department, Treasury, the tax office, major builders and developers, think tank groups, and advocacy groups such as the Urban Taskforce. Put them all in a room together. Let us work this out. As I said, I do not have the answer. But amongst all those people, somewhere is a plan to go forward.

Ms Cate Faehrmann:

Time has expired.

The Hon. ROD ROBERTS:

I am aware that I have run out of time. This is serious. We are talking about people and houses. We waste a lot of time in this Chamber on other matters. I seek leave for an extension of time.

Leave not granted.

The Hon. Ben Franklin:

Point of order: I think the Chamber generally agreed that a one‑minute extension is appropriate. With the greatest amount of respect, I thought that Ms Cate Faehrmann relented.

Ms Cate Faehrmann:

No, I did not.

The DEPUTY PRESIDENT (The Hon. Wes Fang):

The question is that the motion be agreed to.

Motion agreed to.

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