Friday 25 March 2022
NATIONAL HOUSING REPORT HIGHLIGHTS SUPPLY CRUNCH
A new report on the state of the nation’s housing market has put state government’s on notice, highlighting the urgent need to address severe shortages in housing supply.
The National Housing Finance & Investment Corporation (NHFIC) today released its second State of the Nation’s Housing report, showing while housing supply may appear healthy in the short term, there is in fact a major supply crunch on the horizon.
Property Council of Australia Chief Executive Ken Morrison said the report shows that as the economy and Net Overseas Migration recovers, the demand for new households will outstrip supply.
“The projections in this report are concerning, and mirror the same warnings the Property Council of Australia has been making for some time,” Mr Morrison said.
“The report clearly shows that between 2025 to 2032, Australia will find itself 163,400 homes short of expected demand,” Mr Morrison said.
“That’s an average deficit of 20,000 homes a year, every year, until 2032.
“Overall housing supply is expected to fall by around one third in just four years from 2023. That can’t be good for housing affordability,” he said.
The report also highlights significant greenfield land supply constraint in key markets including Sydney and South East Queensland, which could limit the industry’s ability to meet demand.
“The report rightly draws attention to the importance of lag times in its predictions, noting it can take more than 6 years to get new housing to market in certain jurisdictions,” Mr Morrison said.
“At a time when housing affordability is front of mind for some many Australians, the last thing we can afford is having supply and planning constraints putting further upward pressure on rents and prices.
“The fresh NHFIC data also correlates with Property Council/Urbis data, which showed apartment supply in 2020-2024 is likely to be around just one fifth of levels we saw in 2014-2018.
“The Property Council of Australia welcomes this report, and urges governments of all levels to take immediate steps to address the major concerns it has flagged,” he said.
Media contact: Ellie Laing | 0416 007 830 | [email protected]