The National Housing Finance & Investment Corporation (NHFIC) released its second report on the state of the nation’s housing yesterday, showing that while housing supply may appear healthy in the short term, there is in fact a major housing crisis. offer on the horizon.
Australian Property Council chief executive Ken Morrison said the report shows that as the economy and net overseas migration recover, demand for new households will exceed supply.
“The projections in this report are concerning and reflect the same warnings that the Property Council of Australia has been making for some time,” says Morrison.
“The report clearly shows that between 2025 and 2032, Australia will end up with 163,400 homes below projected demand,” he says.
“That’s an average deficit of 20,000 homes per year, every year, until 2032.”
“Overall housing supply is expected to fall by about a third in just four years from 2023. That can’t be good for housing affordability,” he says.
The report also highlights significant greenfield supply constraints in key markets, including Sydney and South East Queensland, which could limit the industry’s ability to meet demand.
“At a time when housing affordability is a priority for many Australians, the last thing we can afford is to have supply and planning constraints that put further upward pressure on rents and prices,” he notes.
“The new NHFIC data also correlates with data from the Property Council/Urbis, which showed that the supply of apartments in 2020-24 is likely to be only around a fifth of the levels seen in 2014-2018.”