Economic Impacts of Social Housing Investment

The COVID-19 pandemic represents one of the most significant challenges to Australia’s economy. The social distancing restrictions are unprecedented, and the associated uncertainty means that Australia will experience the biggest contraction in Gross Domestic Product (GDP) since the Great Depression.

Without international migration the demand for housing will fall dramatically during the 2021 calendar year. The Housing Industry Association (HIA) is forecasting new housing construction could fall by 50 per cent and place hundreds of thousands of jobs at risk. Action is required to support the economy as it deals with the shock of COVID-19.

The SHARP Proposal

The Social Housing Acceleration and Renovation Program (SHARP) aims to build 30,000 social housing units over a four-year period, plus accelerate the maintenance and renovation of existing social housing stock. As well as the benefits of increasing social housing available to low income households, the construction process will provide much-needed jobs and economic stimulus Australia-wide following the Black Summer bushfires and the COVID-19 shutdown of a range of industries.

Click here to read the modelling.