Current Measures to Address the Housing Crisis
Australia is currently grappling with a significant housing affordability crisis, marked by escalating property prices and rental costs that outpace income growth. Between 2002 and 2024, the house price-to-income ratio nearly doubled, with the average Australian home now costing almost nine times the average household income. Concurrently, rental properties have more than doubled over a similar period, intensifying financial pressure on households.
The housing affordability crisis in Australia has increased, with both property values and rental costs escalating at rates that surpass income growth. As of April 2024, the national median market rent reached a record high of $627 per week, reflecting an average annual growth rate of 9.1% over the past three years. This surge in housing costs has significantly outpaced the 2.8% increase in median household incomes, which rose to $101,000 during the same period. Consequently, the median dwelling value-to-income ratio has climbed to 8.0, indicating that median-income households now require approximately 10.6 years to save for a 20% deposit.
These rising costs have made homeownership increasingly difficult for first-time buyers, forcing many to remain in the rental market for extended periods. This, in turn, has led to a surge in rental demand, further driving up costs and contributing to housing insecurity. Many Australians now find themselves in rental stress, defined as spending more than 30% of their income on rent, which limits their ability to save and invest in the future. Additionally, the supply of social and affordable housing remains insufficient to meet growing demand, leaving vulnerable populations at greater risk of homelessness.
In response to this pressing issue, the South Australian Government has launched several affordable housing initiatives aimed at increasing the supply of accessible homes. One notable program is the Affordable Housing Initiative, which has surpassed its halfway milestone with construction underway on the 578th property out of a planned 1,000 affordable homes. Additionally, the Seaton Renewal Project in Adelaide’s west is progressing, with stage one homes now on the market. This project aims to deliver 1,450 new homes by 2035, with 20% designated for affordable housing and 30% for public housing. These efforts are complemented by the HomeSeeker SA program, managed by the SA Housing Trust, which connects eligible buyers to affordable homes and provides resources to facilitate homeownership.
Epic Projects & Consulting has been instrumental in supporting these governmental efforts to enhance housing affordability. A prime example is our involvement in the 100 Homes Program, an affordable housing initiative by the SA Government that expanded across 17 sites in South Australia. As the project and contract manager, Joe Rossi of Epic conducted site visits to each lot every two weeks, maintained rigorous internal quality systems, trained staff and utilised web-based reporting tools to address challenges inherent in such a broad project. Our diligent management of project variations, extension requests and progress certifications ensured the project was delivered on time and within budget.
Epic Projects & Consulting aims to continue to work alongside the South Australian Government to address the housing supply shortage and bring modern homes into the market for Australians looking to buy. Through strategic partnerships and a commitment to excellence, Epic aims to provide more affordable housing opportunities to Australians in a timely manner.