Is Australia becoming a population of renters?

Demand from existing homeowners and investors will continue over the next 10 years as a shortage of houses is expected to continue - as 130k migrants pour into Australia each year, writes Michael Bleby of the AFR. He points out that new loans to investor buyers rose 5.6 per cent in April, their fastest monthly rate since November 2021. 

Although higher borrowing and construction costs have made new projects unviable for many developers , Emma Bray from Macromonitor expects housing starts to increase . 

They have to!! 

She says they estimate that housing starts lifted sharply from a forecast 162,000 this financial year (a 6.5 per cent decline from FY23), up nearly 12 per cent next year to 181,000, up 20 per cent in FY26 to 217,000 and a further 16 per cent to 251,000 in 2027.

So, who will buy these homes? 

Investors or homebuyers? 

It seems that Australia will become a renter society with young people and new migrants not being able to afford the Australian dream of home ownership .

https://www.afr.com/property/commercial/the-next-home-building-boom-is-coming-20240625-p5jonb

Demand from existing homeowners and investors will continue over the next 10 years as a shortage of houses is expected to continue - as 130k migrants pour into Australia each year, writes Michael Bleby of the AFR. He points out that new loans to investor buyers rose 5.6 per cent in April, their fastest monthly rate since November 2021. 

Although higher borrowing and construction costs have made new projects unviable for many developers , Emma Bray from Macromonitor expects housing starts to increase . 

They have to!! 

She says they estimate that housing starts lifted sharply from a forecast 162,000 this financial year (a 6.5 per cent decline from FY23), up nearly 12 per cent next year to 181,000, up 20 per cent in FY26 to 217,000 and a further 16 per cent to 251,000 in 2027.

So, who will buy these homes? 

Investors or homebuyers? 

It seems that Australia will become a renter society with young people and new migrants not being able to afford the Australian dream of home ownership .

https://www.afr.com/property/commercial/the-next-home-building-boom-is-coming-20240625-p5jonb

Median household prices around Australia - June24

Australia's leading independent property economists Dr Andrew Wilson's latest Australian property report shows the performance of median house prices as of June 2024 between various major capital cities in Australia.

Perth topped the chart for the month, year, 1 year as well as 2 year with a whopping growth of 26.8% in the past 12 months!! Followed by Brisbane and Adelaide. 

(Maybe catching up to Melbourne?))

 Melbourne, Darwin and Hobart has been flat , with Sydney growing 5pc .

Where to from here? 

Is the trend your friend?

Where is each market on the property clock?

If you want finance or preapproval - call www.Bsifinance.com.au 

#housing #perth #landdevelopment #landsubdivision #brusbane  #adelaide  #finance #mortgage #bsifinance

www.Bsifinance.com.au