HOUSING REPORT HIGHLIGHTS SUPPLY CHALLENGES – 28 Feb 2008

http://economics.hia.com.au/media/December%20Qtr%202007%20National%20Outlook.pdf

“Further increases in rates will serve to put further upward pressure on house prices and rents. As a nation we are building at least 20,000 new dwellings less than what is required,” Mr Lamont said.

New house starts in 2007/08 are expected to inch up by just 0.5 per cent to 151,676. A sizeable increase in residential building starts will not occur until 2008/9, with a forecasted 4 per cent growth expected in 2008/9.

While growth in new home building remains flat, renovation activity is expected to continue to grow. Total investment in renovations hit a new record of $28.2 billion in 2006/07 and growth of a further 10 per cent is forecast over the next three years.

“The undersupply of new housing is fueling a resurgence in renovation activity,” said Chris Lamont.