WA NEEDS 20,000 HOMES Dire industry warning as worker shortage holds back construction

Sunday 5 June 2022

WA is facing a shortage of about 20,000 homes within four years, with fears this will keep local house prices rising. The Real Estate Institute of WA said the State needs to build 19,500 homes a year to keep up with population growth, demolitions and to address the existing shortage.

State shortfall of 20,000 homes to keep forcing up property prices

Official ABS figures show WA completed fewer than 14,000 new homes - which includes both houses and apartments - last year as the sector struggles with labour and supply shortages. REIWA President Damian Collins said this slow rate of construction put WA on track to build 56,000 homes over the next four years, not the 78,000 needed. "Houses are taking twice as long to build as they were only a few years ago," Mr Collins said. He said the State already had a housing shortfall, with an extra 8000 homes needed to restore equilibrium. Official State Government population projections anticipate an extra 150,000 people living in WA over the next four years. If 2.5 people live in each home, the State will need 60,000 properties to accomodate them. A further 10,000 new homes will be needed to replace those set to be demolished. The combined demand means the State needed to build 4875 homes each quarter, yet in the last three months of 2021, only 3394 homes were completed.

Mr Collins called for more skilled labour, claiming the current rate of construction would lead to further pressure on rents and house prices. "There simply isn't enough skilled labour to finish properties in a timely and cost effective manner," he said. Housing was a big part of the Federal election, with Scott Morrison's plan to allow first-home buyers to dip into their super for a deposit criticised by experts who said this would further increase house prices. Labour has committed to a "Help to Buy" Scheme that means the Government will help first-homebuyers by purchasing up to 40 per cent of a property with them. It will then own a share in the house that can be bought back over time.