Guy Debelle is the deputy governor of Reserve Bank, and says that there is a likely chance of the housing market facing a shortfall when it comes to housing supply. Debelle and other experts fear that this potential shortfall could result in housing prices dramatically increasing in response. He predicts that the demand for housing will continue to grow and that the construction slump could bottom out in 2020.
- According to Royal Bank of Australia projections, there is probably a significant housing shortage on the horizon.
- An increase in housing construction that began in 2012 ended in 2018, but RBA believes construction will likely bottom out in 2020.
- New South Wales and Victoria still have substantial pipelines of unfinished construction work, despite a national-level decline.
“The greater share of higher-density means the construction response to changes in demand is probably slower on the way up and on the way down, as higher-density is harder to stop once it’s underway.”