Housing supply, demand gap grows

Housing supply, demand gap grows

22 December 2010 by Staff Reporter 0 comments

Staff Reporter

Australia continues to run large annual deficits between the underlying demand for dwellings and the completion of dwellings, according to HIA.

HIA's updated projections of the underlying demand for housing suggest that Australia built 22,000 too few dwellings in 2009/10, with a projected deficit of 16,800 dwellings in 2010/11 and 21,000 dwellings in 2011/12.

"In the longer term Australia's housing market is underpinned by the immutable forces of insufficient supply and robust underlying demand," HIA chief Andrew Harvey said.

Looking forward, Mr Harvey said supply-side factors such as the increasing scarcity of land in the main urban centres in Australia will continue to play a major role in driving Australia's housing prices.

"We need to be clear that supply side obstacles which prevent housing construction from keeping pace with the rate of household formation will see Australian burdened with a growing under-supply of housing and a resultant worsening affordability problem," said Mr Harvey.

"Governments at all levels need to increase their efforts to address these supply side issues as a matter of urgency," he said.

 

Staff Reporter

Australia continues to run large annual deficits between the underlying demand for dwellings and the completion of dwellings, according to HIA.

HIA's updated projections of the underlying demand for housing suggest that Australia built 22,000 too few dwellings in 2009/10, with a projected deficit of 16,800 dwellings in 2010/11 and 21,000 dwellings in 2011/12.

"In the longer term Australia's housing market is underpinned by the immutable forces of insufficient supply and robust underlying demand," HIA chief Andrew Harvey said.

Looking forward, Mr Harvey said supply-side factors such as the increasing scarcity of land in the main urban centres in Australia will continue to play a major role in driving Australia's housing prices.

"We need to be clear that supply side obstacles which prevent housing construction from keeping pace with the rate of household formation will see Australian burdened with a growing under-supply of housing and a resultant worsening affordability problem," said Mr Harvey.

"Governments at all levels need to increase their efforts to address these supply side issues as a matter of urgency," he said.

 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
William Phillips on how agents can expand their database and grow their business

Get up close and personal with the best real estate sales agents in Australia in Secrets of the Top 100 Agents. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
upcoming events
REB Awards
Sydney The Event Centre 12 Sep
REB Awards
Sydney The Event Centre 12 Sep
Melbourne The Event Centre 14 Oct
Brisbane The Event Centre 18 Dec
View all events
Do you have an industry update?