Australia falls further behind housing supply target
Australia now needs to build more than 274,000 homes per year to meet the national housing accord target of 1.2 million over five years.
Australia now needs to build more than 274,000 homes per year to meet the national housing accord target of 1.2 million over five years.
Chief economist said 'RBA needed to increase its knowledge and capability to deal with supply shocks'.
Major firm says 'insufficient investment has left the supply side of the economy struggling to keep pace with demand'.
Dwelling completions and commencements rise slightly but not fast enough to match projected target numbers.
Recent falling house prices have barely eroded an affordability gap that has built up over years of rising values, as experts warn much more time is needed.
Australia's housing market is undergoing a broad-based downturn with interest rate rises and affordability pressures denting investor confidence.
Board minutes reveal 'threat of inflation would stick around as long as productivity growth remained persistently weak'.
Budget tax changes have 'accelerated an existing housing downturn in Melbourne, Sydney and Canberra'.
More jobs combined with inflation rise bolster the case for Reserve Bank to lift the interest rates once more.
The Reserve Bank is turning its attention to employment figures after high core inflation showed price pressures were still too high for comfort.