{"id":2075,"date":"2022-03-10T04:31:51","date_gmt":"2022-03-10T04:31:51","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/australia-faces-housing-supply-shortage-is-another-price-hike-ahead\/"},"modified":"2022-03-10T04:31:51","modified_gmt":"2022-03-10T04:31:51","slug":"australia-faces-housing-supply-shortage-is-another-price-hike-ahead","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/australia-faces-housing-supply-shortage-is-another-price-hike-ahead\/","title":{"rendered":"Australia faces housing supply shortage \u2014 is another price hike ahead?"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<p><strong>Demand in Australia\u2019s property market is set to outpace supply once again within the next few years as a nationwide property bottleneck looms.<\/strong><\/p>\n<p><a href=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/property-market-1.jpg\"><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"alignright wp-image-162086 size-medium img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/property-market-1-300x200.jpg\" alt=\"Property Market\" width=\"300\" height=\"200\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/property-market-1-300x200.jpg 300w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/property-market-1.jpg 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\"\/><\/a>According to the latest National Housing and Finance Investment Corporation (NHFIC) <u><a href=\"https:\/\/www.nhfic.gov.au\/media-resources\/media-releases\/nhfic-releases-flagship-state-of-the-nations-housing-2021-22-research-report\/\">state of the nation report<\/a>,<\/u> Australia could be in for a dire dwelling shortage ahead.<\/p>\n<p>Data shows that while the <u><a href=\"https:\/\/propertyupdate.com.au\/property-predictions-for-2022-revealed\/\">housing supply<\/a><\/u> may appear healthy in the short term, there is in fact a major supply crunch on the horizon.<\/p>\n<p>Property Council of Australia Chief Executive Ken Morrison said the report shows that as the economy and net overseas migration recovers thanks to a newly opened border, the demand for new households will outstrip supply.<\/p>\n<blockquote>\n<p><em>\u201cThe projections in this report are concerning and mirror the same warnings the Property Council of Australia has been making for some time,\u201d <\/em>Morrison said.<\/p>\n<\/blockquote>\n<p><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"alignright size-medium wp-image-162087 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/property-market2-300x200.jpg\" alt=\"Property Market2\" width=\"300\" height=\"200\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/property-market2-300x200.jpg 300w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/property-market2.jpg 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\"\/>The report shows that between 2025- 2032, Australia will find itself 163,400 homes short of expected demand.<\/p>\n<p>That\u2019s an average deficit of 20,000 homes a year, every year, until 2032.<\/p>\n<p>And that isn\u2019t good news for <u><a href=\"https:\/\/propertyupdate.com.au\/a-long-term-outlook-on-housing-affordability\/\">housing affordability<\/a><\/u>.<\/p>\n<blockquote>\n<p><em>\u201cAt a time when housing affordability is front of mind for some many Australians, the last thing we can afford is having supply and planning constraints putting further upward pressure on rents and prices,\u201d <\/em>Morrison said.<\/p>\n<\/blockquote>\n<p>Because such a supply shortage will act to put a floor under house price falls and only lead to increased prices going forward.<\/p>\n<p><a href=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/fig01.png\"><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-162084 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/fig01-1160x1306.png\" alt=\"Fig01\" width=\"1160\" height=\"1306\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/fig01-1160x1306.png 1160w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/fig01-267x300.png 267w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/fig01-615x692.png 615w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/fig01-1365x1536.png 1365w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/fig01.png 1378w\" sizes=\"auto, (max-width: 1160px) 100vw, 1160px\"\/><\/a><\/p>\n<h2>We need to fix supply bottlenecks: RBA\u2019s Philip Lowe<\/h2>\n<p>The report also highlights the need for reforms to supply-side policies and backs Reserve Bank of Australia governor Philip Lowe\u2019s view that <u><a href=\"https:\/\/propertyupdate.com.au\/land-banking-the-property-development-strategy-of-the-pros\/\">fixing supply bottlenecks<\/a><\/u> and an increase in the supply of \u201cwell-located land\u201d is a key element of keeping house prices stable in coming years.<\/p>\n<p>Speaking to the House of Representatives standing committee on economics for its hearing on monetary policy last month, Lowe was asked for his thoughts on how housing affordability could be improved in Australia.<\/p>\n<p>The committee is chaired by Liberal MP Jason Falinski, who is also leading the government\u2019s inquiry into housing affordability and supply.<\/p>\n<p>During the hearing, Falinski noted that \u201cone of the biggest expenses or drains on household income is housing costs and affordability of housing\u201d.<\/p>\n<p>Given the RBA\u2019s duty to contribute to \u201ccontribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people\u201d, Falinski asked the RBA governor:<\/p>\n<blockquote>\n<p><em>\u201cWhat, in the view of the RBA, is the one thing that any level of government could do to improve the affordability of housing in Australia given that it is now one of the most unaffordable markets in the world?\u201d<\/em><\/p>\n<\/blockquote>\n<p>According to Lowe, there is no \u201csilver bullet\u201d, but he suggested that \u201cflexible\u201d supply-side measures, including zoning, urban planning, and transportation links, would be key.<\/p>\n<p>Lowe explained that like most things, prices are determined by the combination of demand and supply.<\/p>\n<blockquote>\n<p><em>\u201cIn previous hearings, we\u2019ve talked about the importance of addressing the supply side and that includes the supply of well-located land.<\/em><\/p>\n<p><em>\u201cBecause when we talk about high housing prices, really what we\u2019re talking about is the high cost of land in each dwelling.<\/em><\/p>\n<p><em><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"alignright size-medium wp-image-156102 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/08\/demand-300x225.jpg\" alt=\"Demand\" width=\"300\" height=\"225\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/08\/demand-300x225.jpg 300w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2021\/08\/demand.jpg 800w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\"\/><\/em><\/p>\n<p><em>\u201cSo we can increase, effectively, the supply of well-located land through transportation policy, good planning policy, good zoning policy, and in a broad sweep of time, it\u2019s the supply side that really is the thing that needs to become more flexible.\u201d<\/em><\/p>\n<\/blockquote>\n<p>As we know, lockdowns and restrictions in place over the past couple of years has seen people <u><a href=\"https:\/\/propertyupdate.com.au\/has-covid-19-changed-what-we-want-from-our-homes-2\/\">reevaluate what they want from their home<\/a><\/u>.<\/p>\n<p>All of a sudden a home is a place where people need to be able to work, study, rest, and play all under one roof.<\/p>\n<p>And the research found that Australians are increasingly prioritising spacious living and separate study areas in their next home as a way of \u2018having it all\u2019.<\/p>\n<p>And the central bank governor told the committee that fixing the supply of \u201cwell-located\u201d housing was needed given this increasing demand for larger floor space brought about by the pandemic.<\/p>\n<blockquote>\n<p><em>\u201cWhat we\u2019ve seen over the past couple of years is a very strong increase in demand for floor space; people wanting the bigger homes or homes in different locations because they\u2019re working from home and kids are being schooled home, etc.<\/em><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"alignright size-medium wp-image-162089 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/property-300x200.jpg\" alt=\"Property\" width=\"300\" height=\"200\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/property-300x200.jpg 300w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/property.jpg 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\"\/><em>But this increase in demand for floor space hasn\u2019t been matched by supply.<\/em><\/p>\n<p><em>\u201cIn the longer term, making the supply side more flexible through zoning, planning, and I think, as discussed previously, transport; they\u2019re the things that we can do,\u201d <\/em>he said.<\/p>\n<p><em>\u201cWe can\u2019t do very much about the demand side; people understandably want housing and want to live in the fantastic cities that Australia has, and they want a block of land, many people do.<\/em><\/p>\n<p><em>\u201cSo, if that\u2019s the demand side, the supply side has to be more flexible,\u201d <\/em>Lowe concluded.<\/p>\n<\/blockquote>\n<p><span style=\"color: #ff9900;\"><strong>ALSO READ: <\/strong><\/span><a href=\"https:\/\/propertyupdate.com.au\/where-is-the-property-market-heading\/\" target=\"_blank\" rel=\"noopener\">Where is the property market heading?<\/a><\/p>\n<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/propertyupdate.com.au\/australia-faces-housing-supply-shortage-is-another-price-hike-ahead\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Demand in Australia\u2019s property market is set to outpace supply once again within the next few years as a nationwide property bottleneck looms. According to the latest National Housing and Finance Investment Corporation (NHFIC) state of the nation report, Australia could be in for a dire dwelling shortage ahead. Data shows that while the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2076,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,38],"tags":[],"class_list":["post-2075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","category-property-investment"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Australia faces housing supply shortage \u2014 is another price hike ahead? | Urban Buyer: Buyers Agent &amp; Advocates | Best Property Buyers For You<\/title>\n<meta name=\"description\" content=\"Demand in Australia\u2019s property market is set to outpace supply once again within the next few years as a nationwide property bottleneck looms. 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