NSW heading for a massive housing shortfall

15 February 2010

No matter which way you cut it, the NSW housing crisis is going to get much worse, according to the Urban Taskforce.

The Taskforces chief executive, Aaron Gadiel, said the last three years of historically low housing production in NSW, combined with data from the Federal Governments National Housing Supply Council, pointed to a crisis of unprecedented proportions.

 

The National Housing Supply Council has said, by 2028, the extra housing needed in NSW could range from 500,000 homes to a high of 913,000 homes.

 

The Council calculated that the total number of extra homes built in NSW between by 2028 could range between a low of 429,000 homes to a high of 787,000 homes.

 

The last three years of poor home construction data now make it clear that NSWs housing supply is on the low-end of the range.

 

These trends are consistent with the worst case housing supply scenario prepared by the National Housing Supply Council.

 

At this rate we may see a NSW housing shortfall of 484,000 homes by 2028.

 

The National Housing Supply Council found that the time between identification of new land and construction of dwellings can take close to 15 years.

 

NSW has seen appallingly low rates of new suburb development, as well as plummeting rates of apartment development.

 

While the problem is at its worst in NSW, there are problems in other states too, and federal action is essential.

 

The Federal Government needs to respond as quickly as it did to the global financial crisis.

 

Were in the midst of a national housing crisis and if this crisis persists the pressures may be too much for the Australian economy.

 

Mr Gadiel said that inflexible planning rules and high levies made it hard to accommodate the needs of our growing population.

 

The Commonwealth needs to urgently force changes that will make it easier for housing and urban development projects to take place.

 

This includes cutting levies and giving developers the security they need to buy land knowing that their right to build will be respected.

 

The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.

 

For every $1 million in construction expenditure, 27 jobs are created throughout the broader economy.

 

The construction activity made possible by property developers contributes $78 billion to the national economy each year and creates 849,000 direct jobs.

 

 

Download PDF Version