Geelong housing now rated ‘highly unaffordable’

GEELONG’S housing affordability crisis is worsening, according to new research.
Master Builders Association of Victoria found that Geelong housing had declined from unaffordable in 2004 to highly unaffordable.
The affordability crisis deepened despite the release of extra land in the region, with further allotment supplies flagged for Lara, Lovely Banks and Batesford south.
The Independent reported this year that increased land supplies in Armstrong Creek was aimed at driving greater competition and lower prices for home-buyers, according to State Government.
The Barwon region has the fifth most expensive land in Australia, according to Housing Industry Association (HIA) and RP Data figures.
The ranking followed revelations in the Independent that an international land affordability survey rated Geelong property less affordable than New York.
The 10th annual Demographia International Housing Affordability Survey ranked Geelong at 7.3, placing Geelong among the world’s least-affordable housing markets because of “restrictive land use policies”.
Master Builders chief Radley de Silva said the latest affordability research was “alarming” because it put the cost of buying a house beyond the reach of “too many”.
The research showed the median house price in Geelong had risen 56 per cent from $245,000 to $382,500 since 2004, while household incomes increased 44 per cent to $54,260.
“The cost of buying a home in Geelong is beyond reach for too many, even though local households are bringing in nearly $17,000 more a year now than they did a decade ago,” Mr de Silva said.
“Housing affordability is the forgotten issue of this election campaign but it needs to be tackled.”
Mr de Silva said five key factors contributed to the inflated cost of home ownership: stamp duty and property taxes; building red tape; council delays; limited support for first-home buyers; and a shortage of registered tradespeople.
“We want to see political candidates in Geelong agree with our call for an independent inquiry into housing affordability.
“Cost of living pressures are a huge issue for local residents and there’s no larger single cost for most people than buying a home.
“Residents in Geelong deserve to see some action on housing affordability.”
Mr de Silva said the organisation launched a state election campaign website at buildingourfuture.com.au to highlight the issue of housing affordability.