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More homes needed, says HIA

More homes needed, says HIA

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Date Published : Monday, June 30, 2008

One million new homes need to be built in the next five years if Australia's growing population is to be housed, according to the Housing Industry Association (HIA).

The HIA identified that extra housing is needed to meet the growing demand for owner occupied, rental, community and social housing as a result of very strong immigration and fewer people per residence.

Research conducted by the HIA revealed that 190,000 homes would need to be built during this year and in 2009. Based on projected growth expectations, it appears that one million would need to be completed over the course of the next five years.

The HIA's New South Wales state executive director Graham Wolfe said that migration was placing pressure on the demand for housing on both a state and national level.

He said: "A high proportion of migrants are skilled but very few are coming to the construction sector.

"Without a substantial increase in production, rental costs will continue to spiral, leading to an increasing number of families leaving the state to find affordable accommodation."

Further research into the housing sector revealed today that the number of buyers of residential property had fallen to its slowest pace since the 1991 recession - mainly as a result of 12-year high interest rates.

Those who own homes are not faring much better; it was revealed yesterday that one in ten Australian households is suffering from mortgage stress - with the figure predicted to reach one million within three months.

Last year, the population of Australia grew by 1.6 per cent (332,000).

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