Housing shortage continues to worsen under Labor

The release of Australian Bureau of Statistics (ABS) dwelling approval figures show the housing shortage in Australia continues to get worse under Labor, further eroding housing affordability, said Senator Marise Payne, Shadow Minister for Housing.

“Building approvals fell by 4.7 per cent in August and have continued to run well short of underlying demand,” Senator Payne said. “Just to make up the cumulative shortfall of 178,400 as at June 2009 outlined by the National Housing Supply Council, 14,866 dwellings would have to be built each month and that is without meeting the demand from our increasing population.

“However in August, only 13,049 dwellings were approved; not enough to make up the backlog, let alone meet the demands of new entrants into the market and that assumes that every approved dwelling is built.

“With the NHSC forecasting the shortage to have grown by more than 13 per cent to 202,400 by June 2010, it is clear Labor’s failed policies are making it harder for Australians to own their own home.

“The housing industry is already suffering from a shortage of skilled tradesmen and this creates wage pressures that also feed inflation. This comes as the Reserve Bank is about to start raising interest rates.

“When you combine this with the shortage of land due to the dysfunctional State Labor planning regimes, you have a recipe for fewer houses and higher prices.

“Labor’s failings mean existing homeowners will continue to pay record amounts of their disposable income on servicing home loans and aspiring homebuyers will find it even harder to get a foothold in the market.”