Current at: 30 June 2008
New research from HIA confirms a requirement for almost one million new homes to meet Australia’s growing population.
The research considers Australia’s permanent and short term immigration intake, household formation trends and demolition activity.
HIA’s Chief Executive – Policy, Mr Chris Lamont said, the challenge of building almost one million new homes in just five years is a daunting one but essential if demand for owner occupied, rental, community and social housing is to be met.
Demand for housing is being driven primarily by two key factors: very strong immigration and the decline in the number of persons per residential dwelling. Record migration and demand for housing is being seen in a number of areas, but is perhaps most significant in respect to the private rental market where vacancy rates are hovering around 1 per cent.
“Demand for housing is really biting as evidenced by record low vacancy rates in the private rental market. HIA research confirms that in 2008/9 190,000 new dwellings are required, this is 40,000 more dwellings than expected production,” said Chris Lamont.
Australia’s population is growing at historically high levels. Resident population grew by 332,000 or 1.6 per cent in 2007. Much of this increase (184,000) was due to growth in net overseas migration. The growth in net permanent migration is expected to increase by a further 37,500 in 2008/9.
“Supply must increase rapidly to meet expected demand, particularly in Australia’s capital cities. Without a substantial increase in production there will almost certainly be a growth in the number of homeless and further affordability woes,” said Chris Lamont.
