The urban construction commission (ACC) has asked local authorities in some parts of the country to consider whether to build more public housing projects, a report has said.
The report, released on Tuesday by the Australian Urban Housing Network, said that the development of housing in Australia has been a challenge for a number of years.
“The realisation of the ‘housing bubble’ and subsequent housing downturn has resulted in an unprecedented level of public expenditure,” it said.
“This has been coupled with an ongoing shortage of affordable housing and an increasing number of projects are under construction.”
The report noted that “urban construction is the only industry in Australia that has not seen an acceleration in construction in the past 20 years.”
The problem, the ACC said, is that “the majority of projects will be funded through concessional funding and the construction of public housing is an extremely expensive, and often complicated, undertaking.”
“This means that, unless government or private sector partnerships are able to bring in additional funds to finance the construction and/or supply of housing, the current level of construction will continue to fall.”
The ACC is urging the government to create a fund for urban housing projects to help them build, and to set aside some $20 billion over the next decade for urban construction projects.
Australia is set to receive an extra $3 billion in government funding to fund urban development by 2020.