Australia's Housing Supply Hit by High Interest Rates and Construction Costs
Australia: High interest rates and construction costs are significantly hindering the supply of new housing, exacerbating rental pressures, making it harder for first-time buyers to enter the market, and jeopardizing the national target of 1.2 million new homes over five years, according to property experts. A more supportive climate will require falling interest rates, upward rebasing of rents, normalization of build costs, coordinated investment in social housing, and adjustments to planning in important markets all at once. The current forecast for completions in FY25 is just 138,000 new dwellings. The supply crisis is prompting a reconsideration of regionalization and new housing models, such as land lease communities, which cater to budget-conscious buyers.
Source: Head Topics