WA faces dire housing shortfall: report

Shane Wright

WA faces a shortfall of up to 32,000 houses over the next five years, a Federal agency has warned.

The National Housing Supply Council, in its first report on the state of housing demand and supply across the country, found that even with “medium” levels of growth in WA, the State faced a shortfall that will rate among the worst in the nation.

Nationally, the council estimates that by 2028 Australia will be short by 431,000 homes. If population growth levels accelerate and governments and private builders cut construction over that period, the shortfall will reach 1.5 million homes.

In WA, the council estimates that by 2013 the State will face a shortfall of 17,000 homes and 32,000 if growth accelerates and the property sector fails to ramp up construction.

The council estimates the shortfall will reach at least 40,000 by 2028 and could be as high as 69,000 homes.

Part of the problem, particularly in WA, is the high cost of building.

Perth was the most expensive capital city for house construction, with every square metre costing $961 compared with Sydney’s $917.

Perth had by far the priciest unit construction costs, which now average $3907 a square metre.

The national average is $2141.

The report did not support industry claims that a lack of land for development was driving up prices but said most problems were at the low income level where a lack of investor interest and cuts in community and public housing had greatly reduced supply just as demand was rising.

WA HIA executive director John Dastlik said the findings about WA might have underestimated the extent of the building shortfall, which would eventually create even more problems, particularly for first-home- buyers and those in the rental market.