Industry Issues

‘Industry Issues’ pulls together some of the most interesting and important themes in the strata industry over the past few months.

Cost of Living

The rising cost of living has cast an unfortunate shadow over those who live and work in strata communities.

According to the Australian Bureau of Statistics (ABS), working Australians have experienced the highest yearly increase in the cost of living on record.

For many in Australia and NZ, their dream of homeownership has been able to be realised through the accessibility, affordability and low barriers to entry that strata offers, a dream that may not have been possible in a market with only standalone homes available.

However, like the rest of the country, those in strata communities are being severely affected by increased housing prices, rapidly escalating utilities, and rising maintenance costs.

Housing Shortages

Australia and New Zealand are experiencing an imbalance between the demand for housing and the available supply. These issues are particularly exacerbated in major cities like Sydney, Melbourne, and Auckland, where a significant proportion of the nation(s) population reside.

In fact, the Property Council of Australia (PCA) expects that in Australia alone, the supply of households will result in a net balance of around (minus)-106,300 dwellings (cumulative) over the 5 years to 2027.

Increasing House Prices

Whilst the scarcity of affordable housing options has pushed more people towards strata living, the high demand for these properties has in turn driven up strata unit prices, as well as the associated fees.

According to statistics compiled by Domain, Australia house prices have been lifting at their fastest rate since 2021.

This has led many of the common residents of strata, like young families and retirees, to have found themselves in a pinch, and operating in the midst of a market that is offering limited opportunities and alternatives.

Strata Communities

The quest of the strata resident to continue to balance their financial stability with the comforts or strata living has never been more challenging.

Strata owners must correctly navigate budgeting, levies and decision making at the committee level, to ensure that they are engaging in innovative solutions and coping with the ever-increasing costs of maintaining their communities.

Similarly, it is imperative that policymakers continue to work to address cost of living and housing issues at the local, state and federal levels, to ensure that housing options remain accessible to all.

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