Houses built in Australia nowadays are not enough – says recent reports. The number of houses built in Australia is not enough to accommodate the demand right now and in the coming years. The Australian Bureau of Statistics released reports stating that the residential construction in Australia has seen a drop since last year, which is not a good sign especially with the growth of population, including the immigration and the interstate migration. Because of these things, cities like Melbourne, Sydney, Hobart, and Brisbane continue to grow in population. And this is why it’s important for Australia to build more homes.
During the last quarter of the previous year, there was a 3.3 percent decline in terms of construction of residential properties when it comes to trend terms. As the population in Australia continues, construction of homes should grow and not decline. However, one reason for this could be the growth of units in the inner city, which affects the decision of most developers to break new ground. If you think about it, it does create some doubts on their part. This decline is a far cry from the highs the country experienced in 2016. In 2018, the number of houses was down 20,000 compared to previous years.
At one point, the population of Australia and the construction figures were almost equal, but unfortunately, it didn’t turn out that way. The population growth of the country was so fast, the construction of homes or residentials were not able to keep up. In fact, the Development Institute of Australia warned the state that by 2020, the country will experience a loss of 50,000 houses. But of course, not everyone believes that Australia is short in terms of housing supply. One of them is Ben Phillips of ANU and stated that there is an oversupply of housing supply of 164,000 after conducting a research. According to Phillips, this was a result of overbuilding for the last 5 years, so supply is really there. However, this was the same reason why there will be a decline in the coming years.
The growth in migration will play a huge role in building more homes, especially because the number keeps growing. If there’s going to be some problems, it’s most likely New Zealand’s migration restrictions according to Ryan Felsman’s Commsec. This would start some uncertainties regarding Australia’s acceptance of migrants, which would definitely affect the construction growth.