The National Housing Supply Council says that despite 131,000 new houses built in 2011 the gap between supply and demand increased by 28,000 to 186,800. They also say that based on building rates and household growth that number may grow to over 600,000 in the next 20 years.
The Council was established by the Australian Government in May 2008 to monitor housing demand, supply and affordability in Australia, and to highlight current and potential gaps between housing supply and demand from households.
This shortage highlights the key role investor’s play in the Australian housing market, without the properties supplied by private investors the shortage would be even more drastic.
The council also highlighted the need to build a variety of homes and the high demand for rental properties at the lower to middle rental range.
This ongoing shortage of rental properties is comfort to investors who can expect high occupancy as long as their investment properties are providing what the market is looking for. This highlights the need for careful research when investing and the importance of listening to local experts to invest in properties that have short and long term rental demand.
If you need help you can head to the Education Section of our website for tools and resources to help you in your property investing research.
For the full report visit http://www.nhsc.org.au/