The Australian Census, a nationwide data collection exercise, has a peculiar quirk that could lead to a misinterpretation of housing statistics. On Census night, Australians away from home are recorded as having their usual residence unoccupied, even if it's not genuinely vacant. This has raised concerns among experts about the potential political fallout from misinterpreting this data. The Housing Industry Association's senior economist, Tom Devitt, clarifies that 'unoccupied' does not equate to 'vacant'. A home can be unoccupied due to various reasons such as being between tenants, undergoing renovations, or being a deceased estate. The location also plays a crucial role in determining the impact of these unoccupied homes on housing shortages. For instance, a holiday home on the coast won't address a rental shortage in Sydney. The Real Estate Institute of Australia's president, Jacob Caine, emphasizes that the number of genuinely vacant residential properties is significantly lower than the Census data suggests. He attributes this to the small number of residential investors who deliberately leave properties vacant and unrented. These investors are typically wealthy individuals with multiple properties and no mortgages. Caine argues that governments should incentivize these investors to bring their properties back onto the rental market, but he also acknowledges that new housing supply remains the primary solution to housing affordability issues. Baseline Financial's director, Ari Levinson, supports this view, noting that ordinary mortgaged investors rarely leave rentable homes empty for extended periods due to rising holding costs and negative cash flow. He highlights that wealthy owners, who may have inherited or bought properties decades ago with little debt, are increasingly considering renting out their homes to cover expenses. However, Levinson also points out that short-stay accommodation is not a viable investment strategy, as it doesn't generate substantial income. The Census quirk has sparked a broader discussion about the complexities of housing statistics and the need for accurate interpretation. It raises questions about the effectiveness of policies aimed at addressing housing shortages and affordability, emphasizing the importance of considering the nuances of housing data.
