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Housing Supply Not Enough

Housing Supply Not Enough – Melbourne is facing an low supply of housing that isn’t currently meeting the demands of a growing population.

Melbourne is likely to give a higher share of its GDP to housing than before, or risk a further increase in housing prices and rents to balance supply and demand.

Unlike most countries rocked by the global financial crisis, Australia did not have an surge in housing investment in the middle of the 2000s resulting in over-supply of housing, the Reserve Bank’s assistant governor (economics) Philip Lowe says.

The rate of increase in home building has been below the average of the past 50 years, while population has increased at its fastest pace over the same period.

“If we are to build more housing, we need to ensure that planning guidelines and infrastructure provision can accommodate this. This will provide challenges for all levels of government,” he said.

A second challenge was the capacity of the economy to deal with an increase in dwelling construction at a time when investment elsewhere in the economy is also very high.

Housing Supply Not Enough

Tags: 2000s, Assistant Governor, Australia, Challenges, Dwelling, Economics, economy, Gdp, Global Financial Crisis, Housing Supply, Infrastructure Provision, Levels Of Government, Pace, Philip Lowe, Planning Guidelines, Population Melbourne, Rents, Supply And Demand
Posted in Money