ANZ: the housing shortage could bump prices by up to 20% - the bank notes two key themes (1) house prices are rising substantially, 15-20% in the next few years but as yet there is no bubble; and (2) There is a massive gap in the demand and supply for dwellings. ANZ Chief Economist Warren Hogan notes that by his estimates, there will be two years of supply shortage by the end of next year. He further noted that a necessary part of the Australian economy's transition away from the mining boom to more domestic led growth had to be investment in dwellings, which has been in retrenchment for the best part of decade. Click on the link for a chart that highlights the significant housing shortage which has emerged through the mining boom: (VIEW LINK)
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Good article, but strange not one major bank or property group mentioning ABS Housing and Occupancy Costs report. At least 5 to 6 million spare beds in this nation today - not convinced at all on major housing shortage. Also, latest census shows for first time in 100 years, we saw an INCREASE in number of people living in each house. Thats what happens when times get tougher, people compromise on housing wants, and settle for housing needs. Thats a trend that will continue!