Building crash, migration surge to inflame housing crisis

A plunge in new home building to a 10-year low will collide with the arrival of a record 1.5 million migrants, worsening housing shortages, driving up rents and inflating real estate prices, say property executives., forecast a widening gap between home construction and population growth over five years. The failure by state and local governments to approve enough new homes has exacerbated the housing supply problem.

Treasury’s housing investment forecasts show the value of annual construction activity will fall for three straight years, implying a decline to a 10-year low of $102.9 billion by 2024-25, according to analysis byThe figure represents a 7.3 per cent fall on 2021-22 levels, when pandemic-era incentives like HomeBuilder pushed real dwelling investment to $111 billion.Dwelling investment is tipped by Treasury to fall 2.5 per cent this financial year, 3.5 per cent in 2023-24, and 1.

, penal taxes on foreign investors, and delays and red tape in state and local government home building approvals.“This rental crisis will deteriorate further and quite significantly over the next year or two,” he said. “I’m not sure how Labor can be that confident that they’re going to achieve their goal of a million dwellings being completed by 2029.“The government needs to manage migration numbers. New home building catering for that population expansion will not be there. This has significant ramifications for the ongoing rental crisis.

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Migration surge to add more demand to Australia’s economyJudo Bank Economic Advisor Warren Hogan says the migration surge will add more pressure to an already “overheating” economy. “Of course, there’s the benefit that this will help alleviate labour shortages and that will be welcomed by many businesses and other organisations, but it's more than just helping with labour shortages,” Mr Hogan told Sky News host Amanda Stoker. “This is going to add demand to the economy and the most sort of critical point we're seeing at the moment is in the rental housing markets where rents are surging on a basic shortage and this is a reason this a big part of the shortage.”
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