The Necessity of Housing: Addressing Unnecessary Gains in the Real Estate Industry
Throughout the past decades, the real estate industry has experienced exponential growth, often at the expense of affordability and accessibility. As a former housebuilder with 40 years of experience, I have witnessed firsthand the dramatic changes in the housing market, especially in countries like Australia. The industry has evolved from modest beginnings to a more complex and often contentious landscape. This article delves into the necessity of affordable housing and critiques the unnecessary gains made by landlords and investors.
From Affordability to Unaffordability: A Closer Look
Four decades ago, the real estate scene was markedly different. A typical block of developed land cost about $3,000, and a house construction price hovered around $8,000. Constructing a house and land combined would cost approximately $11,000, which was far more than the average yearly wage of around $7,200. Today, the picture has drastically changed. A mere block of developed land can now cost around $180,000, while construction costs have soared to about $160,000, making the cheapest house and land package around $340,000.
The Financial Landscape: A Changed Reality
Add to the $340,000 the cost of wages for an average worker, which stands at around $60,000 with $10,000 going to taxes. This means that, after taxes, the average worker is left with only $50,000. When faced with the combined expenses of land and construction at over $340,000, it becomes clear why affordability—the backbone of sustainable housing—has eroded so significantly.
Building Techniques Through the Decades: A Testimony to Change
My 40-year journey in housebuilding can be tracked through significant changes in construction methods. When I began, the focus was on creating functional, affordable homes. These early structures often included carpentry work and were built using weatherboards, metal roofs, and timber windows on concrete stumps. One of the primary advantages of these homes was their adaptability. Families could easily alter the internal layout to accommodate changing needs, such as an extended family or a reduction in size as children left home.
Furthermore, these homes were designed to withstand the rigors of cyclones more effectively than modern houses, which are built on concrete slabs with concrete block walls. However, it remains to be seen how these structures would fare in the face of more extreme weather events like tornadoes. The adaptability and resilience of traditional homes have been overshadowed by the rapid changes in the housing market, which favor larger, more expensive properties that are often more difficult to modify.
The Role of Landlords: Greed vs. Necessity
While I firmly believe that housing is a necessity, the industry's focus on profits has led to a situation where affordable housing is becoming increasingly rare. Landlords and property investors often prioritize maximizing returns on investment over the needs of families and communities. This greed and selfishness have contributed to the current crisis in affordability.
It is essential to question the value of owning massive amounts of properties and renting them out for high prices. In a rapidly changing world, the ability to adapt and meet the evolving needs of families is crucial. Landlords who ignore this fundamental truth are more concerned with short-term gains than the long-term well-being of their tenants.
As someone who has contributed to the construction of homes for over four decades, I call for a shift in focus towards more sustainable and affordable housing solutions. It is time to address the greed and selfishness that have stifled meaningful progress in the real estate sector.
In conclusion, the importance of affordable housing cannot be overstated. It is imperative that we address the greed and selfishness in the market to ensure that all families have a secure and comfortable place to call home. The challenges ahead require a collaborative effort between policymakers, housing providers, and homebuyers to create a housing market that is fair, accessible, and responsive to the needs of all.