While a quarter of a million dwellings might be a lot of bricks and mortar, this figure is actually lower than previously estimated, according to Property Observer, which published the research.
ANZ Research forecasts the shortage will ease in the coming years. Booming construction – particularly in the Brisbane, Sydney and Melbourne high-rise unit market – is fuelling supply.
At the same time, Australia’s population growth has slowed from an annual growth peak of 460,000 people between 2006 and 2008 off the back of strong overseas immigration.
So what does it mean for property prices? You’ll need a few morning coffees to get through all the graphs and analysis served up from the Property Observer boffins. But, in short, an underlying national housing shortage has less immediate impact on prices than factors specific to your local market, including household income, housing market sentiment and even home buyer preferences.
So, in the scheme of things, don’t think a shortage of 250,000 homes across Australia means demand exceeds supply in every market – especially if you’re in a mining town with a declining population or a city centre with hundreds of new units hitting the market.
Want some local knowledge to explain what’s happening in your market? Contact us for a chat.
