AHURI urges regional housing measures during pandemic recovery

Regional housing markets increased in value more than capital city markets in 2020 and would have different needs during the recovery from the pandemic, the Australian Housing and Urban Research Institute (AHURI) said.

UTAS researchers used Tasmania as a case study of a regional economy while researching the Pathways to regional housing recovery from COVID-19 report for AHURI.

"This housing demand, most likely due to regional living being perceived as safer than cities in a pandemic, is putting upward pressure on dwelling prices while lowering vacancy rates and reducing affordability in regional Australia," report lead author Julia Verdouw said.

"'In fact, while values in cities decelerated as a result of the COVID-19 crisis, regional values have been growing at 5 per cent per annum, surpassing the growth rate in cities."

The report suggested increasing demand for rental properties in regional areas might be due to a slowing of investor activity.

AHURI said that most likely reflected lower investor confidence in the wake of fewer incentives to invest in property, more tenants owing arrears, policy which had protected tenants and lower housing demand from migrants.

'There is a risk that landlords may shape future risk mitigation strategies in ways that further exclude renting to lower income tenants because they perceive these groups to present a greater risk to rental revenue," Dr Verdouw said.

IN OTHER NEWS:

AHURI said the winding back of the federal JobKeeper wage subsidy and the coronavirus supplement for income support recipients would expose more people to housing risk.

"Our research identifies that a regional model for recovery requires specific attention to place," Dr Verdouw said.

"COVID-19 has exposed housing policy risks that must be addressed in their regional context.

"Government strategies to stimulate employment in local economies and establish strategic and targeted income protection measures for vulnerable groups will both need to be a high priority in underpinning regional housing stability."