April 04, 2023 by Property Australia
[Silverhall Comment – we have been making Silverhall clients aware of this supply shortage. We have been operating for over 20 years and this is not the first time we have experienced a significant difference between Demand for housing compared to the supply. A continued undersupply means you, the investor are best placed for increased weekly rent and/or capital growth].
The National Housing Finance and Investment Corporation (NHFIC) has cautioned that the housing crisis in Australia will persist for the foreseeable future.
In its research report titled State of the Nation’s Housing 2022-23, released on Monday, NHFIC identified post-pandemic population growth and continuing interest rate increases as the primary causes of the persistent housing shortage and affordability challenges.
Slowing supply, together with increasing household formation is expected to lead to a supply household formation balance of around -106,300 dwellings (cumulative) over the 5 years to 2027 (and around -79,300 dwellings over the projection period 2023 to 2033).
ABS Head of Construction Statistics Daniel Rossi said dwelling approvals have continued their downward trend since September 2022 following the conclusion of government stimulus and rising interest rates.
NHFIC expects around 148,500 new dwellings (net of demolitions) to be delivered in 2022-23, before net new construction falls to 127,500 in 2024-25. A recovery in supply is expected after 2025-26 on the back of changing macroeconomic conditions and stronger underlying demand.
From 2023 to 2032, household formation is expected to be dominated by lone person households (563,600 additional households), followed by couples with children households (533,300 additional households). Within 5 years, it is expected lone person households will be the fastest growing household type across the country.
Property Council Chief Executive Mike Zorbas said this emerging 79,300 home deficit is a grim warning.
According to the NHFIC forecast, Brisbane will experience a shortage of 12,300 homes within the next five years, while Sydney will face a shortfall of over 10,000 homes. The largest gap is anticipated in Perth, where there is predicted to be a shortfall of 25,200 homes by 2027.
https://www.propertycouncil.com.au/national/housing-shortage-set-to-worsen