“No End To Our Housing Boom”
Source: Herald Sun
Date: Saturday, February 6, 2010
“Demand for existing homes is going to be pushed so high by our booming population that many economists believe even higher interest rates will not be enough to stop house prices rising.
Though rising house prices will push home ownership out of the reach of many buyers, investors will be the big winners as they collect higher rents.
The Federal Government’s third Intergenerational Report forecasts Australia’s population will increase from 22 million to 35.9 million by 2050.
The percentage of older Australians will be greater than ever, which will have a significant impact on housing.
Smaller, single-level homes are preferred by many older buyers.
Housing Industry Association managing director Shane Goodwin says the population forecast would necessitate building 7.1 million new dwellings – 30,000 more dwellings a year than at 2009 building levels.
“Current building levels fall well below that required by such strong population growth,” he says.
“Land-supply issues, high levels of taxation on new housing at all levels of government, and a slow and highly constrained building approvals process continue to stymie the building industry from providing adequate new housing now, much less over the next 40 years.
“Overcoming these structural barriers will require a concerted effort at all levels of government to ensure that shelter is adequate and affordable for years to come,” Goodwin says.
This makes existing homes even more attractive and possible better investments for anyone who believes the forecasts and is considering buying a home now.”