The 2023 Intergenerational Report paints a clear picture for the urgent need to ramp up appropriate housing supply now to create the homes needed for an older, more heavily populated country with increasing spending pressures over the next 40 years.
“The Intergenerational report is yet another clarion call that we must act immediately if we are to make significant inroads on housing our existing population and supporting the anticipated population growth and demographic changes to 2062,” said Max Shifman UDIA National President.
The report forecasts the nation’s population to grow by 53% over the next 40 years, reaching 40.5 million by mid-2063. The number of people over the age of 65 is expected to more than double, while the number over 85 is tipped to more than triple, meaning government spending will increase in four key areas: the NDIS, interest on debt, health and defence.
UDIA agrees wholeheartedly with the Treasurer’s emphasis on the need to boost productivity to meet these challenges. The development and construction industry is a key driver of productivity, contributing 9% of GDP and generating 11% of Australian jobs across 40+ trades and businesses and which triples economic output in the broader economy.
UDIA analysis shows that the growth projections and our historic shortfall equates to demand for 6.6million additional homes over the coming forty years. The Report also expects a greater proportion of that new housing to be required in the next decade, approximately 191,000 dwellings annually until 2033. This net dwelling growth is 12% higher than the annual average of new dwellings achieved between 2002 and 2022.
The housing crisis continues to worsen as industry struggles to get back lost capacity and productivity resulting from the pandemic, exacerbating the current shortfall in new housing starts.
“It is a vicious cycle – currently industry builds less houses as capacity falls, with increasing materials and labour costs adding to scarcity and prices. The only way we can relieve pressure on home buyers is by boosting the release and creation of development ready land and enabling existing zoned land to get into delivery faster,” said Mr Shifman.
Critically, the success of every single Government housing initiative depends on solving this basic problem first.
“Industry is encouraged by the Government’s efforts to incentivise housing targets, and the proposed housing and affordability reforms announced recently by National Cabinet, such as building enabling and supporting infrastructure as well as streamlining planning and regulation. These can certainly lead to increased housing supply, but the Intergenerational Report demonstrates that all good housing initiatives need to be ramped up tenfold for the next 40 years to ensure a home for all Australians,” said Max Shifman.
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Deanna Lane | National Media & Communications Manager | 0416 295 898 | media@udia.com.au