In four years, there will be a shortage of around 20,000 houses in Western Australia (WA), which will keep local housing prices increasing. According to the Real Estate Institute, the state needs to construct 19,500 homes annually to accommodate population growth and new demolitions and remedy the current housing shortfall. Official ABS data shows, however, that Western Australia built fewer than 14,000 new houses and apartments in the past year. The shortfall was because the industry had trouble finding workers and getting enough supplies.
The slow pace of construction, according to the president of REIWA, has put WA on course to build 56,000 houses over the next four years, rather than the needed 78,000. It now takes twice as long to construct a home as it did only a few years ago.
Of less concern is that demand for new houses from homeowners is greater than the present labour force can construct the housing.
There aren’t enough homes in the state right now, and 8,000 more houses are needed to bring things back into balance and solve the rental problem.
Official State Government population predictions included in recent budget documents expect an increase of 150,000 residents in the state of WA over the next four years. With a 2.5 person occupancy rate, the new West Australians will need 60,000 homes.
Over the next four years, an additional 10,000 new dwellings will be required to replace those that will be destroyed. The combined demand necessitated that the state constructs 4,875 houses every quarter, but in the last three months of 2021, only 3,394 dwellings were built.
There just isn’t enough experienced labour to construct residences in a timely and cost-effective way. Some of the problems with getting materials may get better this year, but Western Australia still can’t build as many homes as it needs to.
Rising house prices and a lack of affordable housing were major concerns in the Federal election, with experts criticising Scott Morrison’s idea to enable first-homebuyers to use their superannuation for a deposit, stating that it would drive house prices even higher. Labour has pledged a “Help to Buy” plan under which the government would purchase up to 40% of a house alongside first-time purchasers. The government would then hold a portion of the property, which could be repurchased over time.
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