Western Australia will need to build an additional 7000 new homes above current production levels each year to meet growing population demands, according to research by the Housing Industry Association.
Western Australia will need to build an additional 7000 new homes above current production levels each year to meet growing population demands, according to research by the Housing Industry Association.
HIA today confirmed almost one million new homes will be needed across the country in five years with residential population growing by 332,000 or 1.6 per cent in 2007.
The association said that demand for housing is being driven primarily by two key factors; strong immigration and the decline in the number of persons per residential dwelling.
In WA in particular, strongest demand is expected in the South West metropolitan, East metropolitan and Kimberley regions.
Below is the full announcement.
New research from HIA confirms a requirement for almost one million new homes to meet Australia's growing population.
The research considers Australia's permanent and short term immigration intake, household formation trends and demolition activity.
HIA's Western Australian State Executive Director, Mr John Dastlik said, the challenge of building almost one million new homes in just five years is a daunting one but essential if demand for owner occupied, rental, community and social housing is to be met.
For Western Australia this means building an additional 7,000 homes above current production each year. Demand for housing is being driven primarily by two key factors: very strong immigration and the decline in the number of persons per residential dwelling.
Record migration and demand for housing is being seen in a number of areas, but is perhaps most significant in respect to the private rental market where vacancy rates are hovering around 1 per cent.
"Demand for housing is really biting as evidenced by record low vacancy rates in the private rental market. HIA research confirms that in 2008/9 190,000 new dwellings are required, this is 40,000 more dwellings than expected production," said Mr Dastlik.
Australia's population is growing at historically high levels. Resident population grew by 332,000 or 1.6 per cent in 2007. Much of this increase (184,000) was due to growth in net overseas migration. The growth in net permanent migration is expected to increase by a further 37,500 in 2008/9.
"Supply must increase rapidly to meet expected demand, particularly in Australia's capital cities. Without a substantial increase in production there will almost certainly be a growth in the number of homeless and further affordability woes," said Mr Dastlik.
Strongest demand in Western Australia is expected in the following areas: South West Metropolitan, East Metropolitan, and the Kimberly region.
