Housing shortfall, prices to ‘skyrocket’
There’s plenty of land to build upon but that’s unlikely to stop housing shortfalls and prices from skyrocketing in the next 20 years, a new report shows.
In a report commissioned by the Federal Government, the National Housing Supply Council has confirmed there is plenty of land available for development on the fringes of Australia’s major cities.
But without significant government and industry intervention the nation’s housing crisis could increase ten-fold by 2028, the report said.
In 2008 the housing shortfall was about 85,000 dwellings.
In three years’ time the number was expected to reach 203,000 and hit 431,000 by 2028.
The forecasts are based on recent housing development and government funding trends.
But if these trends slowed, the predicted shortfall could top 800,000, the report warned.
The shortfalls could also be a higher than the report predicts because it fails to take in the impact of the global financial crisis.
Queensland, NSW and Victoria were set to face the highest increases in demand, the report showed.
And people from lower socio-economic background were going to be hardest hit as rents and housing prices lifted.
Council chair, Owen Donald said there had been a significant boost to housing investment by the Rudd government but much more was needed.
Summary of article by Susanna Dunkerley, AAP, 11 March 2009
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