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The Tasmanian government’s first 20-year Tasmanian Housing Strategy (the Strategy) sets an ambitious vision to end homelessness by improving “the entire housing system for all Tasmanians”.
The action plan centres on delivering 2,000 social and affordable homes by 2027, with a subsequent net increase of 10,000 such homes by 2032.
Achieving this objective demands substantial growth in the building and construction industry.
This expansion will focus on constructing new homes to augment housing density, emphasising infill residential development that offers more housing options closer to employment hubs and community infrastructure, including public transport.
Minister for Housing and Construction Nic Street emphasised Tasmania’s evolving landscape – population growth, changing work and lifestyle patterns and escalating cost pressures.
He highlighted that the plan embodies long-term foresight to ensure the state’s sustainability.
“It will allow us to deliver more quality homes faster, prioritising medium-density accommodation and infill development to make the most of our existing infrastructure and services,” Mr Street said.
“The Strategy will continue to support the fantastic work Homes Tasmania and its community partners are delivering, including innovative schemes like the MyHome Shared Equity Program.”
The action plan delineates four key focus areas: enhancing home quality, aiding vulnerable individuals, enhancing affordability in the private market and fostering local prosperity.
Improving affordability in the private market necessitates new investment models and opportunities that encourage the provision of affordable homes within the private sector, as indicated in the report.
Tasmania’s housing challenges
This strategic initiative arrives amid a nationwide housing crisis, with Tasmania also facing challenges of soaring property and rental prices.
However, property prices have cooled from their pandemic-induced highs, with the median value in the capital cities recorded at $658,994 in October, according to CoreLogic.
Principal at Derwent Finance in Tasmania, Emmanuel Marios, noted that Tasmania underwent a necessary corrective phase post-peak property prices, contributing to a more stabilised market.
“Sellers, in response, have shown flexibility in their pricing expectations, creating opportunities for savvy buyers seeking value in the current market,” Mr Marios said.
“Despite the approaching year end, the demand for home loans and investment property financing remains robust.”
While supply remains relatively low in regional markets, Tasmania stands out as an exception, with an “above-average” advertised supply and declining housing values in recent quarters, according to CoreLogic.
Mr Marios observed a notable surge in demand for properties in regional areas, reflecting shifting preferences influenced by the rise of remote work opportunities.
“Tasmania has become increasingly attractive to mainland buyers, drawn by the state’s unique lifestyle offerings,” Mr Marios said.
He said the government’s focus on promoting incentives for private sector investment aligns with the broader goal of creating a balanced and sustainable housing market.
“The emphasis on social and affordable housing is a positive step toward addressing housing affordability challenges,” Mr Marios said.
The government’s housing strategy aims to facilitate the provision of affordable private rentals and home ownership opportunities.
The strategy will re-evaluate rental legislation and systems, supporting the development of innovative housing models to furnish Tasmanians with stable, secure and affordable housing options.
Furthermore, the plan will identify approaches through which the Tasmanian government can foster sustainable, affordable and innovative models for long-term rental housing and home ownership, including build-to-rent, co-housing and cooperative housing.
[Related: Tasmanian housing stakeholders unite to address support measure gaps]
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