Australia is not building enough houses for the future

Australia needs more homes – and new figures show we’re not building enough, especially where we need them the most.

Figures released by the Australian Bureau of Statistics this week show a drop in new residential construction in the 12 months up to December 2017, continuing in the last quarter of 2017.

This all comes despite record population growth, immigration, and interstate migration which continue to push Melbourne, Sydney, Brisbane and now Hobart well into a more populous future.

The ABS figures showed a 3.3 per cent decline in residential construction in trend terms, with the last quarter of 2017 recording a 0.7 per cent decline.

The weak market outside of Australia’s south-eastern corner is being pointed to as dragging down overall property numbers.

Many would have noticed the growth of cranes on our city skylines. This growth in construction is set to slow as the housing market runs out of puff. But population growth will continue.

Rising population means we need more houses built Photo Getty

Commsec Senior Economist Ryan Felsman said Brisbane, with it’s noted oversupply of inner city units was acting as a drag on residential construction figures as developers hold off on breaking new ground.

Mr Felsman said Commsec expected the market to continue cooling and housing construction to fall away from record highs in 2016, down more than 20,000 new residences to 203,000 in 2018.

But he said Melbourne, Hobart and Sydney all ran the risk of running short of residential properties, despite their record housing construction.

If you look at Melbourne there’s 120,000 people moving to it per annum, but only 75,000 houses being built.”

AMP Capital’s Shane Oliver told The New Daily the slow down in residential construction risked pushing Australia’s housing market into under supply.

Originally Published by The Original Daily, continue reading here.

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