The Reserve Bank says there are early signs that developers are responding to rising prices and rents with plans for new housing supply, but it will take many years to solve the affordability crisis.
RBA assistant governor Sarah Hunter says rising prices and government moves to streamline approvals are prompting more property developers to plan new housing supply.Ms Hunter says new supply is likely to take some time to be built, meaning the housing affordability crisis is likely to continue in the near term.
"Federal and state government initiatives that streamline the approvals and build process will also reduce costs, which will ultimately lift supply. Aside from record levels of immigration, the other key driver of demand has been a reduction in average household size due to demographics , the trend towards more space for working from home, and fewer share houses.
"This suggests that the recent falls in the average number of people per home will be at least partially permanent," she added.The Albanese government dedicated a special chapter in its budget to Australia's housing crisis, and it used these graphs to illustrate the problem.
RBA Reserve Bank Sarah Hunter House Prices Housing REIA Property Market
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