You have heard it on the news.

You have seen it on the property listing numbers.

But why exactly does it feel like there are no quality properties left to buy or rent in Australia?

The truth is we are facing a long term housing shortage that has been brewing for decades.

Hey, everyone.

I’m Kate Hill.

If you’re ready to build real wealth through smart, no nonsense property decisions, you are absolutely in the right place.

Today, we are diving into Australia’s housing stock shortage.

By the end of it, you’ll know exactly where the supply is constrained, where the demand will stay strong so that you can make smarter property investment decisions with confidence.

Australia has a critical shortage of housing stock.

And no, that’s not just about population growth.

It’s not just the fault of immigration.

It’s not just the fault of overseas students.

It’s not really the fault of anything that makes a clickable sensationist headline.

It is about restrictive planning, rising construction costs, gradual changing social dynamics, and a chronic lack of government investment.

The result, a market that is squeezed from both sides, established homes and new builds.

So here is what is going on.

What do we mean by housing stock now established versus new build?

Housing stock simply means the total number of dwellings available in the country, whether they’re brand new homes or existing properties.

Right now both types are critically short in supply.

So why aren’t the sellers selling?

It’s disincentivised sellers.

A major issue is that people just aren’t selling.

Many would upgrade or downsize, but there’s not enough stock to buy, and high interest rates have made it financially unappealing.

And the result of that is that everybody stays put, they might renovate, the whole system stalls.

There is owner occupier gridlock.

Since COVID there are far more owner occupiers and fewer investors.

And unlike investors, owner occupiers don’t sell and rebuy that often.

So this means there is less stock circulating.

It reduces the overall availability.

We are adding more people to the country than homes, especially in capital and major regional cities.

Even without overseas migration, natural growth and urbanisation are putting immense pressure on housing.

There is the rise of the single person household, more divorces and separations, lifestyle shifts, it means more one person households.

But we haven’t increased our housing stock to match that change.

The fastest growing demographic in Australia, the lone person household, it now requires more smaller, more affordable homes and those just don’t exist in enough volume.

Many younger Australians are choosing, not being forced because of unaffordable housing, they are choosing to rent where they want to live and they buy elsewhere as a property investment.

They are delaying ownership of their primary residence, not because they can’t afford it, but because they want flexibility in lifestyle and work.

This shift in priorities means less churn in the owner occupier market.

If you’re finding this helpful, then please hit subscribe.

I share weekly strategies and insights to help you grow long term wealth through smart property investing.

Let’s start with the numbers.

In twenty twenty two Australia had about four twenty dwellings per one thousand people, which is below the OECD average.

We were already behind and we are not catching up fast enough.

Local planning laws can be highly restrictive in spite of all these government promises to build a gazillion new houses, particularly in desirable urban areas.

In many cities land is locked into low density housing which prevents developers from building medium density housing like townhouses or apartments.

The so called missing middle.

Again, we see this mismatch between what is assumed buyers want and the realities of modern life.

Even when land is available, it often is not released quickly or efficiently.

Between council red tape, planning objections from existing residents, projects can take years to get approved.

Building has become more expensive, although some will tell you that the cost increases are stabilising.

There are labour shortages, material price hikes and supply chain delays.

They have pushed up costs so high that many projects become commercially unviable.

Builders simply walk away and fewer homes get built.

Now once upon a time governments helped fill the gap, but public and community housing now make up less than four percent of Australia’s housing stock.

That is a dramatic decline and it forces more people into an already stretched private market.

We’re talking about chronic under investment in housing by all sorts of state and federal governments.

So as you see there is no single cause of Australia’s housing crisis.

It’s it’s a tangled mix, if you like, of supply restrictions, policy decisions, market pressures, demographic change.

What is very clear is that unless all levels of government and industry work together as always to boost both established housing turnover and new dwelling construction, we will stay stuck in this shortage.

For investors, understanding these structural pressures is not just interesting, it’s crucial.

It helps you identify where the supply is constrained, where the demand is gonna stay strong for all sorts of reasons and where the best opportunities are.

Thank you so much for watching everyone.

If you are serious about building real wealth through smart, well researched property decisions then do stick around on my channel.

There is so much here here to support your journey and I will see you in the next video.

You have heard it on the news.

You have seen it on the property listing numbers.

But why exactly does it feel like there are no quality properties left to buy or rent in Australia?

The truth is we are facing a long term housing shortage that has been brewing for decades.

Hey, everyone.

I’m Kate Hill.

If you’re ready to build real wealth through smart, no nonsense property decisions, you are absolutely in the right place.

Today, we are diving into Australia’s housing stock shortage.

By the end of it, you’ll know exactly where the supply is constrained, where the demand will stay strong so that you can make smarter property investment decisions with confidence.

Australia has a critical shortage of housing stock.

And no, that’s not just about population growth.

It’s not just the fault of immigration.

It’s not just the fault of overseas students.

It’s not really the fault of anything that makes a clickable sensationist headline.

It is about restrictive planning, rising construction costs, gradual changing social dynamics, and a chronic lack of government investment.

The result, a market that is squeezed from both sides, established homes and new builds.

So here is what is going on.

What do we mean by housing stock now established versus new build?

Housing stock simply means the total number of dwellings available in the country, whether they’re brand new homes or existing properties.

Right now both types are critically short in supply.

So why aren’t the sellers selling?

It’s disincentivised sellers.

A major issue is that people just aren’t selling.

Many would upgrade or downsize, but there’s not enough stock to buy, and high interest rates have made it financially unappealing.

And the result of that is that everybody stays put, they might renovate, the whole system stalls.

There is owner occupier gridlock.

Since COVID there are far more owner occupiers and fewer investors.

And unlike investors, owner occupiers don’t sell and rebuy that often.

So this means there is less stock circulating.

It reduces the overall availability.

We are adding more people to the country than homes, especially in capital and major regional cities.

Even without overseas migration, natural growth and urbanisation are putting immense pressure on housing.

There is the rise of the single person household, more divorces and separations, lifestyle shifts, it means more one person households.

But we haven’t increased our housing stock to match that change.

The fastest growing demographic in Australia, the lone person household, it now requires more smaller, more affordable homes and those just don’t exist in enough volume.

Many younger Australians are choosing, not being forced because of unaffordable housing, they are choosing to rent where they want to live and they buy elsewhere as a property investment.

They are delaying ownership of their primary residence, not because they can’t afford it, but because they want flexibility in lifestyle and work.

This shift in priorities means less churn in the owner occupier market.

If you’re finding this helpful, then please hit subscribe.

I share weekly strategies and insights to help you grow long term wealth through smart property investing.

Let’s start with the numbers.

In twenty twenty two Australia had about four twenty dwellings per one thousand people, which is below the OECD average.

We were already behind and we are not catching up fast enough.

Local planning laws can be highly restrictive in spite of all these government promises to build a gazillion new houses, particularly in desirable urban areas.

In many cities land is locked into low density housing which prevents developers from building medium density housing like townhouses or apartments.

The so called missing middle.

Again, we see this mismatch between what is assumed buyers want and the realities of modern life.

Even when land is available, it often is not released quickly or efficiently.

Between council red tape, planning objections from existing residents, projects can take years to get approved.

Building has become more expensive, although some will tell you that the cost increases are stabilising.

There are labour shortages, material price hikes and supply chain delays.

They have pushed up costs so high that many projects become commercially unviable.

Builders simply walk away and fewer homes get built.

Now once upon a time governments helped fill the gap, but public and community housing now make up less than four percent of Australia’s housing stock.

That is a dramatic decline and it forces more people into an already stretched private market.

We’re talking about chronic under investment in housing by all sorts of state and federal governments.

So as you see there is no single cause of Australia’s housing crisis.

It’s it’s a tangled mix, if you like, of supply restrictions, policy decisions, market pressures, demographic change.

What is very clear is that unless all levels of government and industry work together as always to boost both established housing turnover and new dwelling construction, we will stay stuck in this shortage.

For investors, understanding these structural pressures is not just interesting, it’s crucial.

It helps you identify where the supply is constrained, where the demand is gonna stay strong for all sorts of reasons and where the best opportunities are.

Thank you so much for watching everyone.

If you are serious about building real wealth through smart, well researched property decisions then do stick around on my channel.

There is so much here here to support your journey and I will see you in the next video.

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