Latest NewsHousing Shortage Set to Accelerate: HiaWednesday, 14 December 2016

Australia's housing shortage could reach 466,000 homes by 2020, if current demand and building trends continue, according to a Housing Industry Association (HIA) report.

The Housing to 2020 report estimates the current shortage at 109,000 dwellings, concentrated around metropolitan Sydney and Brisbane.

HIA senior economist Ben Phillips said planning restrictions, high taxation on new homes, labour shortages and regulations which favour new housing have added to the problem.

"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," he said.

Mr Phillips said demand for workers in the resources sector would put pressure on the already-tight market for skilled labour.

"The $90 billion worth of resource projects on the books is expected to demand an additional 136,000 direct and indirect jobs," he said.

"This labour will need to be housed, adding additional pressure to the supply of labour and materials in non-resource regions."

The report, which examines housing by local government jurisdiction, found that of 669 areas, 295 were experiencing shortages.

The areas with the largest shortage also experienced the highest demand.

"Current construction levels in most high demand areas are simply not sufficient to meet the needs of a fast growing population," Mr Phillips said.

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