Home affordability crisis to deepen July 19, 2007 12:11pm Article from: AAP -
HOUSING supply will slow over the next 10 years because fewer people will be able to afford a home, putting a dent in demand and lowring affordability, a report has found.
Need to be smart
The HIA expects total investment in renovations in 2006/07 is expected to have hit a new record of $28.6 billion and growth of more than 3 per cent is forecast for 2007/08.
The HIA said it supported the recently launched residential infrastructure plan, to help state and local governments meet the cost of building and upgrading essential infrastructure in regional and urban centres.
”It's time to be smart and fair about housing affordability, particularly with forecast growth in housing starts of only 3 per cent over 2007/08 - a result that will barely touch the sides of the required lift in housing supply,'' the HIA said.
”This undersupply, however, has provided a significant boost to renovation activity as potential home buyers stay put and add floor area to existing homes rather than face the prohibitively high transaction costs associated with moving house.''
”Without a concerted all-of-government approach to rectifying the affordability crisis, the build-up in unmet demand will intensify,'' he said.(HIA chief economist Harley Dale).
NHR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
