While I usually cite Macrobusiness.com.au on the Australian housing crisis, Property Update.com.au has also made comment that "critical levels" are being now reached, with a deficit of 200,000 homes. The gap between supply and demand continues to grow. "The numbers don't lie – Australia is on a collision course with a severe housing shortage, driven by policy misalignments and market pressures." Good point but no mention of the herd of elephants in the room, mass immigration. But another article at Macrobusiness.com.au sees this: "The migrants are still pouring in, and the housing shortage is getting worse, but, as they say, "you can't leverage rents" so affordability is a real constraint.
Rents are slamming into a brick wall of the cost-of-living crisis, as Australia plunges to Third World levels because of mass immigration. As I see it, the elites told Albo to turn on the migration tap to full flood, for their profits, and to aid the Great White Replacement strategy. Socialists are happy with both ends of this.
https://propertyupdate.com.au/australias-housing-shortage-all-those-people-but-nowhere-to-live/
"Australia's housing shortage has reached critical levels with a deficit of over 200,000, and the gap between supply and demand in the housing market is only widening.
A recent analysis by independent economist Tarric Brooker sheds light on just how severe the problem has become.
On X (formerly Twitter), Brooker provides a realistic picture of Australia's housing deficit, offering a dual analysis scenario.
To quantify Australia's housing shortage, Brooker uses two scenarios to estimate the extent of the housing deficit from June 2019 to the present:
Here, Brooker takes a more grounded approach with practical assumptions:
- Assumes that 10% of newly built homes are knockdown rebuilds, which means they replace existing stock rather than adding new supply.
- Assumes that 5% of newly completed homes remain vacant, either due to market factors or investor decisions.
- This accounts for the fact that a significant portion of the housing stock is used for non-residential purposes, like holiday rentals.
In this more realistic scenario, the estimated shortfall balloons significantly, with Australia now facing a deficit of 232,000 homes over the past five years.
The numbers don't lie – Australia is on a collision course with a severe housing shortage, driven by policy misalignments and market pressures.
The question remains: will the government act in time to avert this crisis, or will the housing shortage become an even bigger burden for Australians in the years to come?
https://www.macrobusiness.com.au/2025/01/rent-shock-grinds-to-a-halt-as-aussies-run-out-of-money/
"The migrants are still pouring in, and the housing shortage is getting worse, but, as they say, "you can't leverage rents" so affordability is a real constraint.
Thus the rent shock has run into a brick wall. Goldman has more.
Weekly data from SQM suggest sequential growth in advertised rents continues to slow, with advertised rents in Sydney falling again in January (Exhibit 7).
The SQM data tends to lead CPI rents inflation, given SQM measures average rents across the flow of newly advertised properties, whereas the ABS measures rents across the entire stock of rental properties.
Rents make up 6% of the CPI, the largest single item, and there is lots of room for them to fall ahead.
With wage growth crashing into Also's Indian inundation, rents are suddenly going nowhere fast."