01 Mar 2010

Australia is currently experiencing a massive housing shortfall, pushing up prices and making it impossible for first time buyers to get onto the housing ladder.  However a private report released today shows the sale of new home surged in January 2010.

The report shows that new home sales grew by 9.5 per cent in January compared to the previous month. This increase indicates that investors are returning to the market after the economic slump and is hoped this trend will continue for the next few years to come.

Australia’s housing shortfall is currently estimated at between 85,000 and 140,000 and touted to reach as high as 325,000 by 2018. New South Wales currently has the highest housing shortage closely followed by Queensland where property prices and rents have been escalating rapidly.

The housing shortage in Queensland is compounded by a skills shortage of 16,000 workers in the housing industry. The Housing Industry Association estimates to have lost 4,000 building apprentices during the financial crisis and far fewer people are taking up a career in any of the critical trades.

To meet demand 190,000 dwellings are required to be constructed each year and this current skills shortage is expected to impact greatly on the ability to meet demand.

As well as a shortage of skilled workers in the housing industry Queensland is expecting another shortage of mining professionals as coal export projects in central Queensland experience expansion. As migrants arrive in the region to fill these skills shortages even greater pressure will be placed on an already overstretched housing shortage.

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