Property prices are likely to continue increasing in the years ahead, based on a projected housing shortfall outlined in a new report by the National Housing Supply and Affordability Council.
The council estimates Australia will add 1.08 million new households between the 2023-24 and 2028-29 financial years – but that only 1.04 million new homes will be built (see graphs).
This will exacerbate “the already significant undersupply of housing in the system”.
The council says the lack of new housing supply is due to several factors:
- Home building costs have risen sharply
- Building completion times have lengthened
- Insolvencies have driven quite a few builders out of the market
- Land for housing is limited and costly
- Planning processes vary markedly across states and councils
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