WA will need 30,000 houses

10/12/07

WA WILL NEED 30,000 HOUSES

(By Raquel De Brito Sunday Times 9/12/2007)

WA could have a shortage of almost 30,000 houses by 2010, says a top economist.

"Things are going to get considerably worse for first home buyers before they get better," said Paul Braddick, senior economist with the ANZ Bank.

"Given the strong international and interstate migration to WA, the underlying demand for housing is rising strongly and home building activity is just not keeping up with the pace," he said.

Mr Braddick said this would put pressure on rents and house prices.

"You can expect house prices to rise reasonably strongly strongly over the next couple of years," he said.

Housing Industry Association industry policy executive director Chris Lamont said the shortfall was alarming.

"It is going to put further pressure on existing rental accomodation, with an expected 10 per cent annual price growth rate until 2010," he said.

"It is a dire situation and will hurt those people in the private rental market and those looking to get into the market the most."

Mr Braddick said more houses should be built in the city, where they were needed, instead of the urban fringe.