Housing approvals trending down
Home building approval numbers remain at low levels, which is likely to affect housing and rental affordability in the years ahead.
A total of 13,808 building approvals were issued in June, according to the latest data from the Australian Bureau of Statistics. This was:
* 18.0% lower than the year before
* 13.6% lower than the 15-year average
If fewer new homes are built in the coming years, that means buyers and renters will have to fight harder for housing, putting upward pressure on prices.
“Australia has a structural undersupply of housing, with rental vacancy rates around the country at record lows, driving rents and dwelling prices to new heights,” Housing Industry Association chief economist Tim Reardon said.
“The return of overseas workers and students, without an equivalent boost to housing supply, will exacerbate the situation. The only solution to addressing this crisis is to increase the supply of new housing.”
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