Housing shortage continues
Particularly in NSW. According to analysis conducted by ANZ bank, the housing shortage in NSW will hit 100,000 next year (2017) for the first time.
The analysis shows NSW is on track to construct 56,000 new homes this financial year after demolitions are taken into account. This is more than double the number of new homes constructed six years ago.
However, underlying demand for new homes is also expected to grow – by 63,000 – leaving an annual shortfall of 7,000. Added to current shortages, total undersupply will be 99,137 this financial year, and more than 106,000 next financial year.
The calculation is based on population growth, adjusted for the number of people per household which ANZ estimates as 2.2 (people per household).
Across the country, only one area is forecast to have a housing surplus – the ACT – which the analysis suggests will 800 more homes than underlying demand requires.
Considering the remaining areas, Western Australia is reported to be 44,000 under, Victoria 42,000 under, and Queensland is estimated at 30,000 under. Although they’re smaller amounts South Australia is projected to be around 10,000 under, with Tasmania and Northern Territory to be around 5,000 each.
Barring any unforeseen events, developers will be busy for a while yet.
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Disclaimer – This information is of a general nature only and does not constitute professional advice. We strongly recommend you seek your own professional advice in relation to your particular circumstances.