‘A perfect storm’

UQ experts have their say on the QLD housing crisis

An aerial view of an Australian suburb with houses, trees and two streets

The housing affordability crisis continues to bite across many parts of Australia.

It’s a complex issue – interstate migration, cost of living pressures, global supply chain issues and trades shortages all play a part.

The Queensland government recently held a summit with stakeholders in Brisbane to discuss possible solutions.

Researchers from The University of Queensland have weighed in with what they’d like to see come from the plan:  

Rental data reveals dire reality

Professor Shaun Bond from the Business School said the housing crisis is the result of a potent combination of circumstances.

“As well as the unexpected factors of the COVID-19 pandemic and floods, there are long-term demographic and social trends,” Professor Bond said.

“Previous tax and planning policies and ending the National Rental Affordability program have helped to create a perfect storm in the housing market.”

Professor Bond said rental data shows the situation for many families in south-east Queensland is dire.

“During the pandemic, annual rent increases consistently ran at two to three times inflation while the Gold Coast saw a rise of 18 per cent per year,” he said.

“Areas across Brisbane, Ipswich and Logan saw jumps in rent of up to ten times their previous rate of increase.”

Professor Bond said possible short-term solutions include relaxing planning controls, longer-term rental of prefab homes on small lots and repurposing commercial buildings.

“But longer term, the focus should be on private build-to-rent operators, affordable housing that doesn’t crowd out private development, and increased housing supply in key cities and regions across the state,” he said.

The key factors driving housing demand

Queensland’s population grew by almost 750,000 between 2011 and 2021, with almost 90 per cent of that growth in the state’s south-east.

But demographer Dr Elin Charles-Edwards from the UQ City Impact Lab said the growing population was only one element to the state’s housing crisis.

“We can’t underestimate the effect of our ageing population and contemporary living arrangements,” Dr Charles-Edwards said.

“Baby boomers are getting older, and as people age they tend to live by themselves or in smaller households.

“This is only going to continue to add to the pressure for more housing and needs to be addressed.”

Dr Charles-Edwards said a big issue was our lack of understanding of the exact drivers of the crisis.

“We need better and more frequent data on households to ensure we understand and can respond to changes in demand.”

Image: Ines Porada / Adobe Stock

Old Queenslander houses on a suburban street

Housing a fundamental right

Professor Tim Reddel from the Social Solutions group at the Institute for Social Science Research said pressures on Australia’s housing sector are exacerbated in Queensland thanks to the state’s decentralisation, population movement, the uneven impact of economic restructuring and natural disasters.

He said housing should be seen as a foundational human service, and not a market-driven commodity to be purely bought and sold.

“The provision of housing needs to be more person-centred, particularly for people with complex needs or at risk of homelessness,” Professor Reddel said.

“We need innovative, evidence-based housing policy and programs, together with a more integrated service system.

“That means more supply of appropriate and affordable housing including social housing, and better partnerships with private and community sectors.”

A solution to homelessness

Professor Cameron Parsell from the UQ School of Social Science said homelessness across Queensland was a product of the housing market.

“Traditionally people who became homeless often had observable problems, but that’s just not the case anymore,” Professor Parsell said.

“For many, housing is now just unaffordable.”

Professor Parsell said he would like the outcome of the summit to include a commitment to a massive investment in social housing in Queensland. 

An aerial view of a house being constructed. A concrete slab has been laid and the frame is being assembled.

“We’ve really fallen behind other states that have recently made significant investments in increasing the supply of social housing,” he said.

“At just 3 per cent of the market in Queensland now, social housing is well below what’s required to prevent people entering homelessness.”

Professor Parsell said access to social housing is crucial and could take the pressure off the housing market.

“During the COVID-19 pandemic there was an influx of funding and energy into getting homeless people into places like vacant student accommodation, where support agencies were more streamlined,” he said.

“This worked extraordinarily well but has now tapered off.

“But it showed homelessness is a policy issue – and is solvable.”

A new vision for living in cities

Urban planner Dr Dorina Pojani from UQ’s School of Earth and Environmental Sciences said Queensland risks being divided into two classes – the housing ‘haves’ and ‘have nots’.

“We need to increase and diversify housing supply,” Dr Pojani said. 

“Especially in our cities, single-family homes should stand next to granny flats, housing co-ops, semi-detached houses and small and large apartment buildings.”

Dr Pojani said she would like to see Queensland introduce additional measures such as rent stabilization, affordable units in private developments, security of tenure for long-term renters and higher taxation of second, third or fourth homes. 

“These things are not easy to implement but necessary to avoid a dysfunctional housing system which produces inequalities and unaffordability,” she said. 

“Private developers and homeowners, as well as government and housing non-profits all have a role to play in fixing our housing system.”

Well-designed low income housing 

UQ Planner in Residence Stephanie Wyeth said Australia had some catching up to do with the rest of the world in incorporating subsidised housing into neighbourhoods and developments. 

“It’s important there’s support for community-led initiatives – as well as government and business projects – to ensure everyone can access safe, affordable and well-designed homes,” Ms Wyeth said. 

“Good design will help deliver options for people with lower incomes – homes that are comfortable and feel friendly, with natural light and access to open space. 

“It shouldn’t be recognisable as ‘social housing’.” 

Ms Wyeth said short and long-term targets should also be set for housing linked to local jobs and opportunities in regional Queensland. 

“I would like to see the government adopt the recent recommendations from the Planning Institute of Australia, which include well-considered measures for secure and diverse homes that meet community needs across Queensland.”    

Image: Shuang Li / Adobe Stock

A 'For Sale' sign outside of a house in an Australian suburb

Short-term rentals are here to stay 

The Queensland Government announced this week it will commission research into the impact of short-term rentals on the state’s tight rental market. 

Economic and urban geographer Dr Thomas Sigler from the School of Earth and Environmental Sciences said providers like Airbnb, Stayz and others are filling a gap in the market. 

“While hotel rooms provide accommodation for days, and long-term rentals for three months or more, there’s nothing in the middle,” Dr Sigler said. 

“Some people need accommodation for a couple of weeks up to a few months, like travelling workers, people visiting family and exchange students.” 

Dr Sigler said this was where short-term rental providers have stepped in. 

“Hotel rooms alone aren’t going to be enough to accommodate visitors to south-east Queensland for the Olympics, so we need to recognise short-term rentals are an important part of the housing market,” he said. 

“But different council areas have different needs, so a one-size-fits-all approach to regulating short-term rentals won’t work in a state as diverse as Queensland.”

Media: communications@uq.edu.au; +61 (0)429 056 139.