Housing supply is crippling Australia: HIA

Australia urgently needs a housing reform, says Housing Industry Association chief economist Harley Dale.

According to Mr Dale, reducing the supply side obstacles that stand in the way of boosting Australia’s new housing stock represents one of the primary challenges facing policymakers in 2010.

“Issues related to land supply, planning systems, infrastructure taxes and charges, credit restrictions, and skilled labour shortages are all artificially restraining the ability of a highly efficient new home building sector from meeting the housing requirements of Australia’s growing population,” Mr Dale said.

“The recognition and importance afforded these issues more recently is very encouraging, but urgent action is required.”

Mr Dale said the rise in new home starts – which is the first rise since 2002 – will not be substantial enough moving in to 2011.

“Australia currently has a housing shortage in excess of 110,000 dwellings. That figure is in danger of exceeding 450,000 dwellings by 2020 unless urgent action is undertaken to reduce the considerable supply side obstacles preventing Australia from building the number of homes required,” he said.

If you require development finance, speak to one of the commercial finance specialists at Intellichoice today on +61 7 3624 1900.