Home ownership in Benalla increasingly difficult for young people

By Simon Ruppert

May 1, 2023

Getting harder: For many young Victorians buying their first home is just a dream. Photo by Cath Grey

Home ownership is barely a dream for many young Victorian’s — and in Benalla it’s only getting more difficult.

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Data from the Real Estate Institute of Victoria (REIV) has shown housing affordability has continued to decrease as interest rates rise.

Since the beginning of the COVID-19 pandemic the median house price across regional Victoria has increased by more than 45 per cent while the median value of a Benalla home has increased from $265,000 to $423,000, a rise of 60 per cent.

State Member for Euroa Annabelle Cleeland said the trend was increasingly worrying in the current economic climate.

“We’ve seen incredible rates of relocation to regional Victoria since COVID, driving prices through the roof,” Ms Cleeland said.

“Prospective regional home owners are being hit with the double whammy of increased prices and exponentially rising interest rates.

“I want locals to be able to grow up, raise their family and own a home in their own community, without having to save for decades.”

With strong growth in regional areas, like Benalla, Ms Cleeland said the state government needed to level the playing field with fair infrastructure funding for regional areas.

“With people moving to Benalla to enjoy the great regional lifestyle we need to see a boost in investment to support this growth,” Ms Cleeland said.

“This includes ensuring roads are maintained, schools build capacity and our local health services have the funding and staffing they need to do their job.

“This year’s budget is critical to the future of regional Victoria and I hope we see a significant increase in the paltry offering provided to our region in last year’s budget.”

Shadow Minister for Home Ownership and Housing Affordability Jess Wilson outlined policies that continue to have a detrimental impact on home ownership across regional Victoria.

“Since coming to power in 2014 we have seen the (state) government slug Victorians with more than 20 new — or increased — property-based taxes or charges,” Ms Wilson said.

“This further bumps up the cost of a home alongside a clear lack of supply in the market.

“Whether its taxes, interest rates, borrowing capacity or supply of homes — every metric for housing affordability is in reverse under the Andrews Government.

“The Liberals and Nationals took a strong policy to the election, including flying planning squads and a commitment to bring 50,000 new plots to market across regional Victoria.

“We need a planning system that works for regional Victoria and allows locals to access the market and buy a home in their own community.”

A state government spokesperson, however said the last time the Liberals were in government they cut hundreds of millions of dollars from housing and homelessness services.

“And now their federal colleagues are blocking billions of dollars of investment in new social and affordable housing across the country, including Victoria,” the spokesperson said.

“The (state) government's landmark $5.3 billion Big Housing Build is the largest single investment in social and affordable housing in Australia's history, with an unprecedented $1.25 billion invested across regional Victoria to create modern, accessible, energy efficient homes for people who need these most.

“We know the rising cost of living is making it harder for families to make ends meet — that's why we’re helping households with initiatives including free kinder, the $250 Power Saving Bonus, free TAFE and capped V/Line fares.”