186,000 New Dwellings Required Each Year
Adam Smith talks about a report released by the Housing Industry Australia in his article for the website Your Investment Property. The report sheds light on the building requirements in our country and suggests that the most difficult challenge faced by the property market would be to create enough dwellings to accommodate our ageing population.
186,000 new dwellings needed each year
From here on, the country will need something like 186,000 new homes per year, given that the population and inflation-adjusted wages grow at a moderate rate. The figure 186,000 is arrived at by adding 152,000 new dwellings that may be needed to cater to the growing population and between 30,000 and 35,000 homes to compensate for the demolished ones.
2013/14 has been a positive exception
While 2013/14 has really been an exception; in that it has provided enough supply to meet the demand, the same has not been the case in many years that preceded 13/14.
Keeping supply abreast with demand is the main long-term challenge
The main challenge is for the government and it needs to gird up its loins and ensure that demand and supply are on an even keel in the long term. This may not be possible unless all the levels of government come together for this high-priority mission.
You can read the original article here.
I think the figure for new dwellings will have to shoot all across the country. NSW has been a baton-bearer in 2013; what with a hike of 31% in new dwelling figures. WA has done reasonably well for themselves, too. This, however, is more than compensated by the paltry show of other areas- running an average of 1% growth in new dwelling constructions.
It is nice to learn that the dwelling approvals have shot to unprecedented levels (since April 2012). Besides, the fact that a lot of it is ‘apartment’ approval makes a strong case for us.
How do you foresee population growth affecting us?