Housing our community

Demand for new housing in Perth could soon outstrip supply, which could lead to price rises, unless appropriate action is taken.

This was the key message in UDIA WA’s new report Housing our Community: Acting today to avoid tomorrow’s housing crisis, that outlines the issues facing the delivery of housing and the availability of serviceable land in the Perth and Peel regions.

We released the report to sound the warning bell for all stakeholders involved in delivering housing to the Perth and Peel community, highlighting that if we keep progressing in a ‘business as usual’ way, then we are heading for a major housing crisis, with the current rental crisis just the tip of the iceberg.

Demand for housing in Perth is cyclical. In the past 10 years alone, Perth has experienced three separate peaks in the market cycle in which annual dwelling commencements peaked well above 20,000.

Previously these peaks have been managed in part through larger development estates that have been ready to release new land, such as was seen during the state and federal stimulus programs last year, however, our report shows many of these larger development estates are now reaching their full development capacity.

Driven by rapidly changing economic conditions and labour requirements, demand for housing in WA has increased exponentially in the last 12 months with very little warning. Despite the development industry rapidly increasing the short-term availability of lots, increased housing demand has resulted in a five per cent increase in the median Perth house price between June 2020 and March 2021.

This increase has the potential to continue without an adequate supply of land for new housing and readily available development sites, especially as international borders reopen, and we expect the population to grow because of our excellent management of COVID-19 to date.

This means housing will become even more expensive for everyone, both renters and purchasers. Households will have to compromise their housing choice and/or potentially live further away from their family, support networks and workplaces to find a home they can afford.

Not only does our report highlight the potential issues facing us, but we detail five key recommendations designed to alleviate them and put in place a strategy to avoid the next housing crisis.

Housing is a basic human right. We want people to have quality, affordable options that reflect their needs. Now is the time to prevent the next housing crisis and UDIA WA stands ready to play our part in delivering affordable homes for the future.

The full report can be found on our website www.udiawa.com.au.