Australian population growth will continue to outstrip housing supply

The gap between housing demand and supply is worse than ever, new official forecasts show.

According to a report by the federal government’s national housing supply council, as Australia’s strong population growth continues to accelerate, the combined housing shortfall could reach 500,000 homes and apartments by 2029, the Australian reported.

The shortage is particularly severe in New South Wales, where almost one third of the country’s total population lives. Despite this population pressure, the state is currently contributing less than 20 per cent of the nation’s new dwelling starts – a trend that could lead to a damaging price boom in Sydney.

This would make life extremely difficult for first homebuyers who wish to compare home loans in search of the most affordable options.

Meanwhile, new research by the economist Saul Eslake has revealed that last year there were just 333 dwellings completed for every 1,000 increase in population – less than half the rate of ten years ago.

A study released last week by the Tax Office revealed that despite its housing shortage, Sydney has the highest proportion of wealthy citizens in Australia, laying claim to seven of the nation’s ten most prosperous postcodes.

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