have propped up the property market through the pandemic, population growth is already slowing rapidly due to the closure of the international border.
In Melbourne, the corporation estimates there will be an oversupply of 75,500 dwellings between this year and 2022 before demand starts to catch up with supply. By 2025, demand is expected to be 10,200 short of supply.In Sydney, the corporation believes there will be a 70,500-dwelling oversupply by the end of 2022 before the market starts to correct. Outside the capital, regional NSW is forecast to face an over-supply of 20,100 dwellings by the end of 2022.
"Supply and demand projections suggest rental affordability will improve out to 2022, particularly in more densely populated eastern seaboard cities, as there are fewer households forming to soak up new supply," it found. "Longer term trends of declining affordability, particularly for low-income households in the private rental market and the ability for prospective first-home buyers to transition to home ownership are likely to persist, particularly if supply is not responsive to demand when it recovers," it found.