The Cook government in Western Australia is placing a strong emphasis on affordable housing as it prepares for its state budget, marking its first review of finances since re-election. In a bid to encourage more West Australians to own homes, the government has introduced a shared ownership scheme along with low deposit loans for modular homes. These initiatives aim to streamline the home construction process by building off-site and later assembling on-site, reducing the time required.

Additionally, the government has unveiled a $210 million shared equity scheme and a build-to-rent fund set to commence later this year. Under the shared equity scheme, up to 1,000 loans will be available with the state purchasing an equity share of up to 35% of the home's value or a maximum of $250,000. This move is intended to facilitate home ownership for lower and middle-income households by lowering upfront purchase costs and ongoing mortgage repayments.

Recent data indicates that the average home price in Australia has exceeded $1 million for the first time, underscoring the urgency of addressing the affordable housing crisis. To address the shortage of homes, the government has allocated $12.3 million in the upcoming budget to attract interstate and international tradespeople to bolster home construction capacity.

A report released last week revealed that over half of West Australian households find housing unaffordable, signaling a deepening crisis. The Bankwest Curtin Economics Centre report identified a housing shortage as the primary issue, with a growing number of residents struggling to afford rent or mortgage payments. This has led to a trend of people moving away from central areas in search of more affordable housing options.

While the recent housing initiatives have been welcomed by industry stakeholders, concerns remain about the construction sector's ability to meet the surging demand for housing. The Property Council of WA highlighted workforce shortages as a significant challenge, emphasizing the need for more skilled workers to address the housing crisis effectively.

As the government continues to roll out housing-related measures, the focus remains on accelerating housing supply and expanding social housing options. With the state budget set to be unveiled this week, expectations are high for additional funding and initiatives to address the pressing housing challenges facing Western Australia.