The key word in real estate is shortage.
It was the key factor in the property price rises we have seen in the past year, in the face of multiple increases in interest rates.
And it’s going to get worse before we see any improvement.
Australia continues to build far too few new dwellings – and the forecast for 2024 is grim, from the viewpoint of addressing the shortages that are helping to drive up property prices and rents.
It’s predicted that home building will occur in 2024 at the slowest pace in more than a decade.
The Federal Government has set a goal to build 1.2 million new homes over the five years from 2024 – an average of 240,000 new homes each year – which is a rate of construction that has never before been achieved in Australia.
Currently the industry is falling well short of that target – and is likely to continue to do so, given that the building industry is blighted by shortages of everything, rising costs and building companies going broke week by week.
