Geelong ‘6000 homes short by 2020’ – HIA

TOM BENNETT
GEELONG faces critical housing shortages within a decade, according to a peak building industry body.
Housing Industry Association warned the shortage would reach almost 6000 homes by 2020 if building rates failed to dramatically increase.
HIA economist Geordan Murray said the disturbing forecast was based on current building and demographic trends.
“We looked at housing construction numbers for the past 20 years and extrapolated those figures into the future. We also took into account projected population increases as supplied by the Australian Bureau of Statistics.”
Mr Murray said the HIA’s method forecast a national shortage of 500,000 homes by the end of the decade.
The shortage in Surf Coast would be 774 homes and 100 in Borough of Queenscliffe.
Mr Murray said the figures would be on top of accommodation shortages already experienced in many parts of the country.
“In 2007 occupancy rates per dwelling were falling but now that trend is beginning to reverse.
“There’s strong anecdotal evidence that children are staying at home longer. There are also signs of a growing trend for houses to be shared by multiple families.
“These are the sort of effects the constraint of housing supply is having.”
Mr Murray welcomed recent releases of new property subdivisions in the Geelong region.
“Large estates like those at Armstrong Creek, Clifton Springs and Lara will help mitigate the problem”.
Mr Murray urged all levels of government to work with the building industry to avert the predicted housing crisis.
“Cooperation between everyone involved is the key to solving this potential problem.
“The three arms of government must support the housing industry and help deliver the aspirations of potential home owners.”
Mr Murray pointed out that 35 per cent of new-home building costs went to governments and taxing authorities.
“Taxes like the GST, stamp duty, land tax an infrastructure charges have a serious and negative effect on affordability and the potential for growth,” he said.