More Homes Needed To Meet Growth: The Shortage Of Homes At Nsw
There is a shortage of homes in New South Wales according to the latest statement from the Housing Industry Association Australia. At least eighteen thousand homes will be required by next year to meet the growing demand. Over the past two years there has been a considerable shortfall in the construction of new houses in the state. This is one of the main reasons why new houses will be needed to meet growth.
Graham Wolfe executive director of the associations state branch says that this kind of trend will last for some more time to come. It will also lay a major strain on the rental market.
The strain of rising interest rates have led people to go in for rental housing rather than buy a new home or even construct one. This has brought about a big drop in the sales of houses. The extra housing was necessary to meet the requirement for owner occupied rental community and social housing.
The far West region is in a much better position today. There are new constructions happening there and the number seems to be stable. Mr. Wolfe predicts this situation will sustain for a few more months. With the Australian Population growing at 1.6 percent and the New South Wales population growing at 1.3 percent it is very much necessary to construct new homes.
Migration is a major driving force for the extra demand of houses. Every week there are thousands of people moving into NSW from other states as well as from overseas. This is putting a big strain on the rental market. Not enough new houses are being constructed to accommodate the rising demand.
If the growing demand for housing is not met soon then the people will leave the state looking for place where inexpensive accommodation is available or rent or to own. Jim Hickey a real estate agent from Broken Hill says that today there are a number of houses in the market for sale but nobody is interested in buying the houses. There is a big drop in house sale this year when compared to same time last year.
In New South Wales a major contribution to the housing industry was made by the two big mining companies in the region. They required a large number of housing to accommodate their employees. In fact they called the shots in the housing market. Today they are not hiring. They also seem to reducing their work force. Since Christmas not many mining staff have moved there. This has led to a big drop in the demand for housing.
Reserve Bank of Australias financial aggregates data shows that the interest rates are at a 12year high. This has reduced the number of buyers of residential property. Economist Savanth Sebastian of Commsec equities says that the housing market does not seem likely to be recovering soon. People are avoiding it like plague now.
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