Legislative Council Fifty-Fifth Parliament, First Session (55-1) 55 1 Parliament of South Australia Legislative Council published Matters of Interest Affordable Housing Affordable Housing The Hon. D.G.E. HOOD Legislative Council The Hon. D.G.E. HOOD (15:30): Until recent years, Adelaide was renowned for its affordable housing, but sadly this is no longer the case. As members in this place would be well aware, our city is now becoming notorious for its rising costs in housing and indeed many other rising costs as well. Not only does Adelaide have the second most expensive housing market in the nation after Sydney—and that is according to relative income considerations—but according to the new Demographia International Housing Affordability Report released on 21 May, just a few weeks ago, Adelaide is in fact now, according to their data, the sixth most expensive city in which to purchase a home in the world, behind the likes of Hong Kong, Sydney, San Jose, Vancouver, Los Angeles, etc. It is quite staggering to think that purchasing a home in London or New York is now more achievable for the population than it is for those living in Adelaide. Adelaide is consequently experiencing a significant housing crisis, with unaffordable housing leading to a tight rental market due to low vacancy rates, with an increasing number of people facing homelessness, which of course in itself is tragic. It is deeply concerning that, according to the ANZ CoreLogic Housing Affordability Report, Adelaide is the least affordable capital city in which to rent—the least affordable—and yet it is of course one of the smaller capital cities. This situation is naturally impacting younger people and lower income households in particular, who are both renters and, in many cases, aspirational buyers. I am sure I am not alone in this place when I say that I have received contact from many constituents from across the state expressing the hopelessness they feel in not having the opportunity to enter the housing market or even find a rental that they can comfortably afford. This is a serious problem for our city, for our state and for our society. This is unfortunately not surprising, given the Australian Bureau of Statistics has calculated that South Australia is in fact the poorest state in the country on a household income basis per person. These are difficult problems that will take serious consideration to remedy. However, it is not only younger people and those with lower incomes who are struggling to find a home or provide themselves with some adequate shelter but also South Australians who have what we would normally consider decent, steady incomes over an extended period of time, and even those from two-income families are also finding it difficult. I note the Property Council of Australia's report released in March, entitled Beyond Reach, found that for many key workers Adelaide suburbs are priced well above the 'affordable' 30 per cent threshold of household income required to service a mortgage. It notes that, according to samples studied in the report, accessing home ownership in suburbs across Adelaide often requires five to nine times the average key worker's household income, and only a household income of $150,000 per year or more can provide access to new entry-level housing across the suburbs that were surveyed. This is becoming a crisis. According to the Housing Industry Association, $237,000 of the cost to purchase a new home and land package is directed to state fees and taxes alone, which only serves as a further blow to those trying desperately to get ahead. South Australian Executive Director of the Property Council, Mr Bruce Djite, said: This report is a wake-up call to government to slash the cost of developing housing…The research contains damning case studies quantifying that housing in Adelaide is simply beyond reach for everyday South Australians…Across a variety of households, workers from both blue and white-collar industries are priced out of the market…If action is not taken this will worsen out to 2030. Just last month, the opposition attempted to take action by introducing sensible amendments to legislation that would have unlocked additional areas for housing development throughout South Australia. Our amendments to the Planning, Development and Infrastructure (Environment and Food Production Areas) Amendment Bill would have seen additional land that was not suitable for productive farming opened up for development. In my strong opinion the amendments put forward by the opposition struck the right balance between increasing housing supply and protecting our vital agricultural industries. It is certainly disappointing that more South Australians have been denied the opportunity to access land that is currently well serviced with existing water and electricity infrastructure to realise their dream of home ownership because those amendments proposed by the opposition were not accepted. The enviable lifestyle many of us have become accustomed to here in our state is sadly at risk of becoming a distant memory for future generations. If our parliament fails to work in a bipartisan or multipartisan manner to solve this housing crisis, then I think we are truly in for some very difficult times. It is my hope that, going forward, the government works in cooperation with the opposition and other parties when it comes to implementing reasonable measures in the best interests of South Australians. Housing is a necessity.