While booming post-pandemic migration is outstripping new dwellings by a record level, Australia was starting from behind even before the borders reopened.
A pandemic shift to smaller households is creating a structural shortfall of 120,000 homes a year and making the housing crisis worse, a reality unlikely to change any time soon, NAB economists say.
The same RBA research suggested the shift increased total demand for dwellings by about 120,000 in two years – a structural shift that will be difficult to compensate for without a significant uptick in construction. Commonwealth Bank economist Harry Ottley noted current population growth is the strongest for over 50 years
Without further supply to meet population growth and fill the structural gap left by household composition, the upward pressure on rents and property prices is unlikely to subside, according to former RBA governor Philip Lowe.House prices rose 0.9 per cent in October, up from the 0.7 per cent monthly increase recorded over each of the previous three months, according to house price data released by the Bureau of Statistics on Wednesday.
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