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Lack of skilled workers combined with rental vacancy lows still an issue for those wanting a home

UDIA National analysis of data from CoreLogic and ABS released today, shows the continued struggle for major housing providers to regain capacity and deliver much needed housing.

CoreLogic’s July rental market update (national) reveals the lowest rolling 12-month level of rental listings since September 2013. Average Rentals grew 3% for houses (+10% YoY), and 4% for units (16% YoY). Vacancy rates remained at 1.3% in July – the tightest levels recorded in the last decade.

UDIA analysis shows rental listings are down 32% on the long run average and national house rental pricing has grown 45% since March 2020. This is compounded when we see an exodus of rental housing investors that is pushing rents still higher.

The latest ABS Overseas Arrivals and Departure data showed that permanent skilled arrivals were up 20% in July (MoM) which reflects a 26% growth on July 2022 levels but it is still 17% below pre-pandemic levels. Temporary skilled visa holders grew 17% month-on-month and +30% on July 2022 levels, but are still down 20% on pre-pandemic levels.

“While increased immigration is a good sign, we simply do not have the labour force to build the housing Australia needs, said Max Shifman,” UDIA National President.

The Prime Minister was correct when he said at National Cabinet yesterday that, “All governments recognise the best way to ensure more Australians have a safe and affordable place to call home is to boost housing supply.”  UDIA agrees particularly as affordability issues in urban and regional areas are really the result of a chronic lack of development-ready land caused by a lack of enabling infrastructure, zoning, integrated planning and approvals.

“The new numbers coming out on both rental prices and skills shortages tell us that the State and Federal Governments were right to bring forward the National Cabinet supply boosting measures and there is not a moment to be lost in getting them in place,” said Mr Shifman.

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Media Enquiries:
Deanna Lane | National Media & Communications Manager | 0416 295 898 | media@udia.com.au