Housing undersupply to hit 431,000 by 2028

A government assessment of housing supply has confirmed that Australia is suffering a severe housing shortage that will worsen noticeably should current construction activity not improve.

The National Housing Supply Council’s State of Supply Report released yesterday, estimates that Australian housing suffered an undersupply of 85,000 dwellings in 2008.

The Council estimates this figure to rise to 203,000 by 2013 and 431,000 by 2028, which would put extreme pressure on house prices already under strain by the current undersupply.

Master Builders Australia CEO Wilhelm Harnisch said reducing taxes such as stamp duties and developer charges, speeding up development applications and increasing land supply would all be critical measures needed to address this shortage.