Housing Supply Falls Well Short of Demand; Report States Gap Is Up to 186,800 Units and Rising

Article excerpt

AUSTRALIA'S housing shortfall is expected to blow out to more than 640,000 in 20 years, prompting industry calls for tax cuts and other measures to stop prices going through the roof.

The gap between demand and supply increased by 28,200 to 186,800 housing units this year, a National Housing Supply Council (NHSC) report reveals.

The annual report on the state of supply shows NSW and Queensland had the largest shortfalls of 73,700 and 61,900, respectively.

Based on building trends and household growth, the report predicts the gap could grow to more than 640,000 homes in the next 20 years.

NHSC chair Owen Donald says more government financing for housing for low-income earners and financing support, along with changes to planning and development approval, could boost supply and affordability.

aExisting demand-side measures like the first home owners grant and Commonwealth rental assistance could also be re-examined with a view to having a more substantial impact on housing supply and affordability,a Mr Donald said in a statement.

While there had been some movement on land release arrangements and infrastructure in several states, much more was needed, he said.

Work was also needed on planning and development approval arrangements in most jurisdictions, he said, awith delays, uncertainty and adverse community reaction being major obstacles to increasing supply within existing urban areasa. …


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