More Affordable Real Estate 'Needed'

Federal and state governments need to address the lack of affordable homes for sale, according to the Housing Industry Association (HIA).

The organisation claimed Australia delivered 25,000 fewer properties this year than ten years ago, with 1.3 million new houses needed by 2020.

HIA managing director Shane Goodwin described affordable real estate access as one of the country's biggest challenges.

"Governments can't ignore housing any longer," he stated.

"They need to act more constructively, co-operatively and determinedly to meet the housing needs of Australians and their families."

According to Mr Goodwin, with 2013 being an election year, it is important that all the parties embrace policies that look to resolve housing supply issues in Australia.

He called for an end to the red and green tape that are hampering new developments and initiatives that boost affordability.

The HIA highlighted problems in the construction sector as a central factor, noting that the industry has contracted for 34 consecutive months.

Other problems include taxes, levies and charges on properties for sale, which can account for 40 per cent of the cost of buying a home, the organisation added.

"Building new and affordable homes should be actively encouraged, supported and sustained by governments," Mr Goodwin stated.