Perth needs 17,000 new homes each year

Perth will need more than 17,000 new homes each year over the next five years to cope with its growing population, a new report shows.

The Australia On The Move report, compiled by Matusik Property Insights for the Residential Property Council (RDC), revealed Perth will need 9,068 houses each year and 8,108 units until 2014.

Separately, Mandurah will need an additional 1,326 dwellings each year to meet demand while Bunbury will require 901 homes.

The figures rank Perth in the top five places across Australia needing new homes.

Melbourne topped the list with the city needing 29,082 homes each year, then Brisbane with 24,537 and Sydney needed 24,155.

The Gold Coast was ranked five with 8,372 homes needed each year until 2014.

The demand comes as Perth's resident population is estimated to grow from its current 1.62 million to 2.3 million by 2027, a jump of 42 per cent.

Australia's permanent resident population is projected to grow by 27 per cent to 28 million in around 20 years.

"Australia's housing stock has long been undersupplied," RDC executive director Caryn Kakas said.

"As Australia On The Move reveals, our population is expected to explode, which will only add stress to the housing supply/demand mismatch.

"Limited supply and rising demand can only lead to one thing: rising prices. And rising prices means less affordable housing.

"Our nation as a whole needs to build a total 153,847 new dwellings to meet the continuing rise in population. This does not include meeting the underlying lack of supply in the current market."