The gap between housing supply and demand continues to grow, on the back of a surging population.
The latest report by the National Housing Supply Council estimates that Australia had a dwelling shortfall of 178,400 as of June 2009.
According to the report, the gap between supply and demand grew by 78,800 dwellings during last financial year.
The Council projects this figure will exceed 300,000 dwellings by 2014.
Housing Industry Association (HIA) chief executive Graham Wolfe said the Council’s projections should spark a call to action by all levels of government.
“The Council suggests that underlying demand for dwellings is over 180,000 each year and that while Australia has the land to potentially develop close to this level (176,000 dwellings), planning delays and restrictions and developer charges make such an outcome highly unlikely,” Mr Wolfe said.
“To this end, HIA is pleased with the Council of Australian Governments’ reform agenda which aims to improve supply and affordability by looking at a host of issues that impact on the final cost of housing.”
“Failure to address these considerable issues will have dire outcomes for the cost of housing for both those purchasing homes and those who remain in the rental market.”