The Real Estate Institute of Australia (REIA) has said that the National Housing Finance & Investment Corporation’s (NHFIC) State of the Nation report confirms the need for a national plan for renters, first home buyers and owner occupiers as Australians build new households in the wake of the COVID-19 pandemic.
REIA President, Hayden Groves said this report reiterates REIA’s push for government to address supply as the main way to solve the affordability dilemma.
“It remains unknown to what extent supply chain crunches and labor shortages will affect productivity for new builds.
“NHFIC does note the impact supply constraints and associated cost increases will have on meeting expected demand growth. Should the impact be more acute or prolonged the supply and demand gap will worsen,” Mr Groves said.
Mr Groves said that with media today reporting an anticipated receivership of ProBuild this will no doubt weigh on consumers’ minds and challenge the assumptions within the projected forecast for new dwellings and houses.
“Household formation is across the board expected to exceed supply by 164,300 by 2024-2025 after some short-term relief this year and next, which will maintain pressure on affordability, particularly as interest rates increase.
“With these challenges a Federal and State Government Plan for both housing supply and affordability is badly needed.”
