“There is still a lot of unsatisfied demand for housing.” ANZ senior economist David Cannington
NSW’s shortage of housing has been growing each year for the last decade.
NSW could close its borders tomorrow and it would still take 3 years to build enough homes to fill the state’s unprecedented housing shortage. And despite a boom in apartment building in some pockets of Sydney, demand for new homes is outstripping supply.
The state’s housing shortage will top 100,000 homes next year for the first time.
The last time the state’s supply of housing exceeded demand was 2002 to 2006 and during that time home prices fell only slightly. However over the decade since then, Sydney home prices have almost doubled rising by 88%.
Amid fears of a housing price bubble, ANZ senior economist, David Cannington, said the analysis suggested any price falls would be limited.
“What this analysis says is there is still a lot of unsatisfied demand for housing. So even when prices do start to fall, that creates opportunities for households who are now priced out of the market to start buying houses.”
This is part of the reason why house prices are will remain at the high level they are at the moment.
Read more here: SMH Article