Pressure on Housing—Long term

Last week the government released their third Inter generational Report forecast.

It is forecasting the population to grow from current levels of 22 million people to 35.9 million by 2050.  An increase of 13.9 million people with the level of older Australians increasing as wills the average age they will be living too.  This means a double whammy, as less existing homes come on the market from us living longer and with our increasing population putting further pressure on existing and new stock.

Shane Goodwin from the Housing Association of Australia believes that if these forecasts are true, we will have to build another 7.1 million new dwellings. In real terms this figure represents 30,000 more dwellings a year than the number of dwellings built in 2009.

With this on-going shortage of supply and demand high, it all bodes well for property values for investors.