Housing demand is set to soar across the country’s four most-populous states over the next two decades fuelled by a predicted 7.4 million national spike in population, analysis by PEXA-owned Informed Decisions shows.
“Population growth is a proxy for either rental or purchasing demand because all these people are going to need a roof over their head,” he said. “People go where there is somewhere to live,” he said. “Clearly there’s a shortage of housing and the lack of affordability, so we need to increase supply to address that.
To meet the housing demand for those increases in population, an estimated 723,000 homes would be needed across Melbourne.Sydney would need an additional 582000. Across Brisbane, an extra 381,000 homes are required while Perth would need 334,000. Arjun Paliwal, head of research at InvestorKit said Melbourne was ripe for solid house price growth in the medium-to-long term boosted by increased demand from strong population growth and its lacklustre performance in the past few years.