Residential real estate industry leaders have welcomed the election of the Rudd government. With Labor in power federally and in every state, industry leaders expect a new era of co-operation on issues such as infrastructure funding and taxes.  But they warn Labor must do more to solve the housing affordability crisis by investing in infrastructure, freeing up land for building and reducing development taxes.

Figures published by the Real Estate Institute of Australia on Friday show housing affordability is the lowest on record and set to worsen. "More, sooner - perhaps that should be our catchphrase,'' REIA president Noel Dyett said.

He welcomed the promised introduction of a dedicated housing minister, but said it should be a cabinet position. "We're looking forward to Thursday for the appointment of the new minister,'' he said. "We hope they give that the impact it's due and make it a cabinet position.''

Wall-to-wall Labor governments at federal and state level should mean an end to buck passing, he said. "One would expect that they would work together harmoniously.''

Housing Industry Association managing director Ron Silberberg said the Howard government had neglected housing. He gave the incoming Labor government the thumbs up. "There's a sense of optimism because for the first time in more than a decade housing has a place on the agenda.'' He also welcomed the promise of a dedicated housing minister.

But neither man would be drawn on who would make a good appointment. Tanya Plibersek is the current shadow housing minister, but the position could be up for grabs after the ALP's victory.

Urban Development Institute of Australia Victorian executive director Tony De Domenico said the industry could work with the new government.

"We welcome their promises on building infrastructure,'' he said. "We think if they're able to work with the states to build infrastructure that would be good. "If they're able to convince the states to remove stamp duty that would be good.''

Kevin Rudd will stick by his promise to be an economic conservative, he said. "There's no signs there that trade union domination will happen. "It can't happen because if it does housing affordability will be blown right off the graph.''

He urged the Prime Minister-elect to cherry-pick the best parts of Liberal Party housing policy. "The Libs are talking a lot about land supply, that's important, and stamp duty.''

An expected new focus on green building will be welcomed by industry, he said. But he said it could not be expected to shoulder the entire burden of new costs. "You've got to spread the cost across the community of some of these climate change issues,'' he said.

"There's a lot of green things you can do but it's got to be a balance between what you can do and what it costs.''

November 26, 2007 - News.com.au