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
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