Sydney’s Housing Shortage Is Set To Increase Further
More People need More Houses
I recently read an article on the Your Investment Property Website about some fascinating research from the Property Council of Australia. The researchers found that the population NSW grew by 109,000 people last year alone, and 5 years before that the Greater Sydney population increased by as much as 326,568. This sudden yet continuous population growth calls for one thing…
Over the next 10 years, Australia may be facing a housing crisis as 190,000 homes will be needed to match the population growth by 2024.
Families are now concerned with dealing with high prices for homes and their new dwellings not being approved on time by the Sydney Council. The Sydney Council is partly responsible for this because they are not able to approve new dwellings fast enough. At the current rate, they are short of 20,000 homes approved a year. Within the next decade, families will struggle with finding a place to live.
According to a report commissioned by the Property Council of Australia and coinciding with the data from the Australian Bureau of Statistics, only 17,002 homes on average have been approved by the 43 councils of Sydney each year for the last decade. When contrasted with their long-term targets, they were short of 54,000 homes already by the year 2004. What was supposed to be their target? 22,178 homes approved every year. The report also showed that even with favourable marketing conditions, the number of approved houses averages at 23,350 per year in Sydney.
NSW Executive Director Glenn Byres says that “the Sydney councils should speed up their housing supply because the home buyers and the economy are paying the price”. For Byrnes, building a home is vital to the economy and tens of thousands of people rely on it for trade and employment. Failing to meet the demand would mean sky-rocketing prices and housing will become less affordable.
You can read the full article here
My take on Sydney’s Housing Shortage
I believe this is great news for anyone considering purchasing property in Sydney. Since we are all bound to the laws of supply and demand, any under-supply, especially in sought-after regions such as our Eastern suburbs, should only result in increasing home prices. If you are considering finding a new home in Sydney for a great price, why not give me a call today?