Housing shortage could exceed 70,000 by 2020

[News]

According to a new report by the Housing Industry Association, Western Australia could find itself more than 72,500 homes short by 2020

Currently the state's aggregate housing shortage stands at 17,400 dwellings and the population is expected to reach 4.3 million by 2056.

The association's Housing to 2020 report found that 283,000 new homes will have to be built over the next 10 years to accommodate the predicted population growth.

"That is 83,500 more homes than were built over the last 10 years," HIA state executive director John Dastlik said.

"The supply of new homes has not kept pace with underlying requirements.

"As our housing shortages worsen, we run the risk of pushing up property prices further than necessary while leaving a significant number of people behind in inadequate housing in terms of size and/or location."

Mr Dastlik warned that planning restrictions, higher taxation on new housing compared to existing dwellings, labour shortages and onerous regulations would constrain growth in new home construction.

"This shortage is set to worsen without a clear plan from the WA Government to ensure well located, affordable land is made continually available," he said.

Housing shortages exist in more than one-third of WA's 141 local government areas (LGAs).

As of 2009, Wanneroo had the greatest shortage, needing 1,963 houses.

Rockingham was second, with a deficit of 1,662, followed by South Perth at 839 dwellings, and the City of Swan and Town of Vincent face shortages of more than 400 houses.

"Many of the LGAs with the greatest housing shortage are also the same regions with the highest level of demand," Mr Dastlik said. "Again, it's the growth areas in and around metropolitan Perth where demand will be highest. "Current construction levels in many of these areas are not sufficient to meet the population growth needs. "The underlying demand for housing is strongest in the Wanneroo LGA, and based on the current building trend, the shortfall in dwellings will be most marked there."

[Lee The Mortgage MAn]

This is a snippit from my autumn newsletter, If any one wants full version, send me you email adress and I will forward it on to you, Its quite informative.

The Reserve Bank of Australia (RBA) pushed the official cash rate up 25 basis points to 4.00 per cent in March.

Rates have now risen four times over the last five RBA Board meetings, and it would appear that the surging strength of our economy, the falling jobless rate and rising home prices will prompt further rises as the year wears on.

Indeed, most major bank economists expect the official cash rate to settle around the 4.5-5.0 per cent mark by year's end.

With this in mind I consider a number of topics in this month's Mortgage News.

Our articles purchasing off-the-plan as well what type of investment property will suit your needs, consider opportunities in the current market.

I also take a look at how you can help your children onto the property ladder through co-ownership plus some other strategies, and how to add value to your home through renovation.

If you'd like to discuss any topics highlighted in this issue of Mortgage News, or have any questions on how the recent rate rise may impact your mortgage, please feel free to give me a call.