Housing Shortage Worsening

The Housing Industry Association released its inaugural 'Housing to 2020' report, which finds that if current building trends persist, then Australia’s cumulated housing shortage would reach 466,000 dwellings by 2020.

Senior economist Ben Phillips said the report highlights a current housing shortage that already numbers over 109,000 dwellings.

“If we don’t get a comprehensive supply response to the accumulating housing shortage then the lack of affordable and appropriately located rental properties will only worsen, while pressures on existing home prices will continue at an undesirable rate, placing avoidable upward pressure on interest rates,” Phillips said.

“Current construction levels in most high demand areas are simply not sufficient to meet the needs of a fast growing population,”

The report found that shortages exist in just under half (295) of the 669 local government areas (LGA) across Australia with the majority found in and around metropolitan Sydney and Brisbane.

“It was also found that many of the LGA’s with the largest housing shortage are also the same regions with the highest level of demand," Phillips said. "Again, it’s the growth areas in the greater Sydney area and in South East Queensland where demand will be amongst the highest in the nation."

From http://www.brokernews.com.au/news/newsletter/40979