In terms of “bang for buck”, Australia’s leading economists have chosen social housing as the most effective option to boost a post-Covid economy.
The devastating economic and social consequences of the pandemic have been felt most acutely by the lower-end of the labour market, adding to already pervasive problems of affordability.
The survey of 49 economists—including a former member of the RBA board and current government advisors—overwhelmingly endorsed social housing as the most popular option to boost a sluggish economy over the next two years.
Despite an early indication from housing minister Michael Sukkar that the budget will leave the funding of large-scale social housing to the states, pressure is mounting from advocacy groups and the opposition to address the need for critical housing infrastructure.
AHURI executive director Michael Fotheringham, who is opening The Urban Developer’s upcoming Affordable and Social Housing vSummit, says that there is clear evidence investment in social housing is key to economic recovery.
“Investment in social housing construction is a key mechanism for jobs across construction in the short term and is a source of more affordable housing in the medium term, both of which are crucial to national recovery,” Fotheringham said.
With such a pressing need for both housing and economic stimulus, are we on the cusp of a major public spending program into housing in Australia?
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Hero image: Dortheavej Residence, Copenhagen. Image: BIG.