Another nine million homes will be needed by 2055!

The nation will need to more than double its housing stock over the next 40 years to keep pace with population growth and capitalise on boosting economic growth through more construction jobs.  

Building another nine million homes presents a big opportunity for construction, but will prove a tough feat unless infrastructure investment rises, taxation is reformed and red tape is cut, the country's housing industry warned.

The 2015 intergenerational report predicted Australia's population would grow about 1.3 per cent annually over the next 40 years, to 39.7 million by 2055.

Housing Industry Association chief executive for industry policy and media Graham Wolfe said residential construction offered solutions for housing the population, improving affordability and creating jobs.

"Governments must focus on investment in economic and social infrastructure, increasing the supply of residential land and removing impediments in the planning system," he said.

Another way to increase housing would be to incentivise local councils, Master Builders Australia chief Wilhelm Harnisch said. The MBA has floated the idea of federally funded competition-style payments to councils as a reward for releasing more land and using brownfield sites for housing.

"Master Builders backs the view of the intergenerational report that more accountability and less waste and duplication must be required from these levels of government," Mr Harnisch said.

Source: http://www.afr.com/real-estate/another-nine-million-homes-will-be-needed-by-2055-20150306-13w0na

4C Realty

Caroline He