Housing Policies and Impacts on Housing Supply and Demand in Australia

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
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1ECONOMICS ASSIGNMENT
Table of Contents
Introduction................................................................................................................................2
Housing policies.........................................................................................................................2
Impacts of housing policies on the housing supply and demand...............................................4
Conclusion..................................................................................................................................4
References..................................................................................................................................5

2ECONOMICS ASSIGNMENT
Introduction
The housing sector of Australia is one of the most booming sector in the country as
well as in the international framework. Much of which can be attributed to the increasing
economic and industrial prospects of the country, which in turn has led to an increase in both
the domestic as well as immigrant population of the country, who migrate into the country
with the objective of finding better economic, job prospects and an overall better life (Austin,
Gurran and Whitehead 2014). This in turn has led to a considerable increase in the demand
for housing properties in the country, thereby leading to an acute affordability crisis in the
housing sector of the country, thereby leading to the loss of welfare of a significant share if
the population of the country, especially the lower and the middle-income classes of the
population. To address the problem, the government of Australia has planned and
implemented several policies, the primary ones and their impacts on the housing demand and
supply are discussed as follows.
Housing policies
The main policies and steps taken by the government to bring the housing market in a
optimal position are as follows:
a) National Rental Affordability Scheme- The NRAS Scheme commenced in 2008 and the
main aim of the policy is to increase the supply of the rental housings in the country at
affordable rates. The government planned to do the same by providing the housing suppliers
with an annual incentive for ten years, provided that they supply their housing assets to the
renters at the rates which are at least 20% below the rates which usually prevail in the
housing markets of Australia (Dss.gov.au 2018). The scheme aims to provide up to 38,000
properties under this scheme and has nearly 133 housing providers which include property
developers as well as non-profit building companies and community housing suppliers.