NSW Property Council executive director Luke Achterstraat claims that “housing affordability is under pressure” because “low building approval rates” are “affecting the delivery of housing targets in New South Wales”:
“Since the unwinding of stimulus measures and the return of lockdowns across parts of NSW and Victoria, approvals for private houses have fallen 24.4 per cent from the record high in April,” Achterstraat said.
“In the year to March 2021, NSW delivered 29,500 new homes, well short of the 42,000 outlined by the Greater Sydney Commission [to meet population demand].
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“A reduction of nearly 10 per cent in dwelling approvals in NSW is a concern when we are already not meeting housing targets across the state, and have a 50,000 dwelling shortfall to make up from previous years”…
“The delay in obtaining approvals is adding significantly to the cost of housing—holding costs for property are high and greatly increase risk and deter investment,” he said…
“The failure to meet demand for new housing is driving up prices and the everyday Australians are suffering the consequences.
“Without addressing supply, we have a multi-generational issue that will price aspiring homeowners out of the market, and potentially lose talent to other states with more affordable housing markets.”
NSW’s housing supply ‘problem’ has already been solved by the collapse in immigration:
In fact, the federal government’s National Housing Finance & Investment Corporation (NHFIC) forecast that Greater Sydney’s housing market would be thrown into heavy structural oversupply courtesy of the immigration collapse:
Thus, the solution for NSW’s housing supply ‘problem’ is obvious: do not restore pre-COVID mass immigration.
Sadly, the federal government has taken the opposite approach, with the Intergenerational Report (IGR) forecasting that net overseas migration (NOM) would permanently increase to 235,000 people a year after the pandemic:
Let’s cut the bull: Australia’s housing supply ‘problem’ is an excessive immigration problem.