REIWA Asserts Housing Crisis Driven By Supply, Not Demand

Housing Crisis in Australia: A Lack of Supply, Not Demand – REIWA

Identifying the Real Issue Behind Rising Property Prices

Joe White, the president of REIWA, pinpointed the real issue behind the increasing property prices in Perth. According to him, it’s not about specific market sectors like investors or baby boomers. The core problem is a significant gap between supply and demand.

“The substantial imbalance between supply and demand is the real driver behind the rising property prices, not any specific sector of the property market,” said White.

The Gap Between Population Growth and New Home Construction

In 2023, Western Australia experienced a 3.3% increase in population, resulting in around 31,600 new households needing accommodation. However, only 16,800 private dwellings were completed during the same period.

This gap of approximately 15,000 homes has intensified the housing crisis in the region.

“The fact is we are not building enough new homes to meet the demand,” White added.

Addressing the Supply Issue: Bureaucratic Reforms and Innovative Solutions

White advocated for reducing bureaucratic hurdles that hinder the construction of new homes. He also suggested exploring diverse housing options like medium-density housing and demountable homes to address the supply issue.

“We are exerting too much bureaucratic effort in dictating where people can’t live rather than where they can live,” he commented, pushing for a more proactive approach to alleviate the housing shortage.

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