Housing shortage to force prices higher
Article Category: Property & Housing
By Your Mortgage Magazine, www.yourmortgage.com.au, 26 March 2009
With demand outstripping supply in many areas, the housing shortage could grow even more in coming years in certain states.
Housing stock deficiency is expected to be worst in NSW next year, with demand 77,900 above supply, according to BIS Shrapnel. That's followed by Queensland at 34,500 and Victoria at 22,300.
The Daily Telegraph reported that more homes are being built in Adelaide than in Sydney in 2009 - 7,500 to Sydney's 7,300 - a glaring example of the issues facing the largest capital city in Australia.
Nationwide, the gap between supply and demand was at 85,000 dwellings last year, but that's expected to reach 203,000 by 2013 at the current pace, according to a recent National Housing Supply Council report.
The latest figures led the Housing Industry Association (HIA) to call for more incentives to lure buyers to new homes, thus increase the supply.
"As the Supply Council report confirms, there's a chronic housing shortage" said Chris Lamont, HIA's chief executive. "Unless more incentives and assistance are provided to increase the supply of housing, we'll again see a rapid increase in house prices in the not-too-distant future."