25.11.2024Housing challenge a top concern for leaders 

A survey of Australian city leaders has highlighted capability gaps in addressing the housing crisis, with leaders calling for a more cooperative approach to tackle complex urban challenges.

Committee for Melbourne member Urbis’ biennial 2024 City Leaders Survey analysed insights from more than 200 senior executives from influential city-shaping organisations to understand the opportunities and challenges that will shape government and industry priorities over the coming years.

Results from the survey uncovered:

• a pessimistic near-term outlook and concerns about the ability to address the systemic conditions that create and maintain vulnerabilities in our cities
• nine in 10 city leaders identified housing affordability and access as the biggest challenge for cities to address
• more than half of city leaders perceive their city lacks the necessary resources and capacity to resolve outstanding housing challenges (-52 per cent)
• positively, perceived capability gaps in addressing climate change and future skills demands that were present two years ago are no longer evident, with policy commitments around the to a net zero transition providing more confidence to act and build necessary capacity.

Urbis Managing Partner James Tuma said the housing crisis was the top concern for leaders but not just around well-documented issues of supply, funding, labour market and regulatory barriers.

“Instead, housing was described as an enabler of success in so many other areas that matter to us – delivering social outcomes, economic participation and productivity, more environmentally sustainable places, and providing a sense of optimism across our communities.

“This decline shows just how interconnected housing is with other societal outcomes and it’s clear that without addressing housing, we can’t hope to improve our cities’ overall wellbeing.”

Urbis Director Mark Dawson said with concerns around housing affordability, cost-of-living and economic difficulties, city leaders are calling for industry to develop an integrated response that addresses the many facets of the housing system.

“By focusing only on pricing and supply, we are missing the bigger picture of how housing fits together across the whole ecosystem. Affordable, well-located housing is not just a social good; it is a powerful economic driver.

“To meet the challenge ahead, Australia’s leaders must explore innovative housing delivery and funding models and collaborate so that tax, funding and planning reforms work better together.”

Urbis Director Nathan Stribley said city leaders are advocating for public-private partnerships (PPPs) to deliver social, affordable, and specialist market housing, while governments also need to stimulate private sector housing delivery as this is how the bulk of housing stock is delivered.

“It’s great to see the increased government focus on changing policy settings to try to promote housing development but the balance between regulatory and economic settings haven’t quite overcome the current market failures.

“Applying a holistic view of interconnected elements—such as infrastructure, community needs, and sustainability addresses the linkages between these domains and fosters integrated solutions that balance growth with environmental stewardship and social equity.”

The Victorian Chamber and Committee for Melbourne are advocates for housing reform, last year releasing a Housing Taskforce Report to tackle Victoria’s housing crisis, following consultation with members and industry stakeholders.

The report contained 36 policy recommendations around seven key themes of planning, local government, tax, rentals, infrastructure, innovational and regional Victoria. Victorian Chamber Chief Executive Paul Guerra was also selected to join the Victorian Government’s Housing Taskforce to improve outcomes in the State.