The Australian housing industry will have to boost its production rate by more than 70,000 new homes a year in order to keep up with the country’s projected population boom.
Last week the Federal Treasury revised Australia’s population from 28.5 million to 35 million by mid-century.
The Housing Industry Association’s deputy managing director Shane Goodwin said Australia has a massive gap between the supply of dwellings and the underlying demand for dwellings.
“The gap is set to widen further with obvious consequences for house prices, rents and affordability,” Mr Goodwin said.
“Not only will there be a greatly increased demand for accommodation, Australia is faced with further strains on urban infrastructure, health and education to meet expected increases in population.
“Much of the responsibility for the funding and delivery of services in these areas falls on state and territory governments, which will face additional budgetary pressure to accommodate the extra population.”