{"id":42426,"date":"2023-02-28T10:55:27","date_gmt":"2023-02-27T21:55:27","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=42426"},"modified":"2023-02-28T10:55:27","modified_gmt":"2023-02-27T21:55:27","slug":"nerida-conisbee-housing-construction-not-keeping-up-with-population-growth","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/nerida-conisbee-housing-construction-not-keeping-up-with-population-growth\/","title":{"rendered":"Nerida Conisbee: housing construction not keeping up with population growth"},"content":{"rendered":"

PHOTO: Nerida Conisbee is the Chief Economist at Ray White. SUPPLIED<\/strong><\/p>\n

\n
\n

Australia\u2019s population growth increased by 290,000 people in the 12 months to June 2022 and this rate of increase is expected to continue this year.<\/p>\n

While this increase is good news for sectors experiencing employment shortages and for our economy, it comes at a time when the number of houses being built is starting to fall.<\/p>\n

A\u00a0construction crisis and a fall in housing approvals is starting to show up in home completions.<\/p>\n

In some parts of Australia, a lack of housing is showing up in skyrocketing rents and house prices that remain high despite the sharp rise in interest rates.<\/p>\n

\"Wendy's\"<\/a><\/div>\n
\n
\n

US giant bringing \u2018hundreds\u2019 of stores to Oz<\/a><\/h2>\n<\/header>\n<\/div>\n

The challenge is most acute in Queensland.<\/p>\n

Population growth<\/a>\u00a0in the state didn\u2019t really slow down in the pandemic.<\/p>\n

Even though international migration was negative during this time, interstate migration ramped up.<\/p>\n

Even though this level of interstate migration has slowed, international migration has more than matched it.<\/p>\n

Queensland\u2019s population growth accounted for more than one-third of Australia\u2019s growth in the 12 months to June 2022.<\/p>\n

\"\"<\/a><\/div>\n
\n
\n

Profile your business (for 12 months) \u2013 ONLY $499 INCL GST<\/a><\/h2>\n<\/header>\n<\/div>\n

At the same time, advertised rents in Queensland have increased $80 per week over the past 12 months.<\/p>\n

House prices are now increasing again in Brisbane and have been doing so since last November, even though interest rates are yet to peak.<\/p>\n

Queensland has a housing shortage that is worsening, a situation that is also increasingly the case in other states.<\/p>\n

This week, the impact of rising construction costs showed up in the value of homes being constructed.<\/p>\n

Even though the cost of construction has increased 20 per cent over the past 12 months, the value of housing construction completion fell marginally across Australia.<\/p>\n

\"Michelle<\/a><\/div>\n
\n
\n

Fitness guru\u2019s retreat up for grabs<\/a><\/h2>\n<\/header>\n<\/div>\n

In Queensland, it fell almost six\u00a0per cent. Tasmania, which has had a housing shortage for a long time, saw a decline of 18.8 per cent.<\/p>\n

The only states to record an increase were NSW and WA.<\/p>\n

The solution is to get more homes built.<\/p>\n

Construction costs will start to moderate this year but higher finance costs mean the appetite to invest in new housing is very low.<\/p>\n

\"Move<\/a><\/div>\n
\n
\n

News Corp says deal to sell real estate asset Move Inc. has fallen apart<\/a><\/h2>\n<\/header>\n<\/div>\n

Policies that encourage more housing investors would be the most effective short-term solution to solving the\u00a0housing shortage.<\/p>\n<\/div>\n<\/article>\n

\n
\n
\n

Nerida Conisbee<\/h3>\n
Nerida Conisbee is the Chief Economist at Ray White.<\/div>\n
<\/div>\n<\/div>\n<\/div>\n<\/div>\n
READ MORE VIA ELITE AGENT<\/a><\/div>\n

MOST POPULAR IN NEW ZEALAND<\/span><\/h3>\n