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Addressing the supposed housing shortage

Another week passes by with yet more arguments on the wisdom of property investment, one of them being about whether or not this country really is facing a housing shortage.

New reports of an extreme national house shortage recently hit the media, this time from Goldman Sachs which foresees a 250,000 housing shortfall by 2013.

It’s not easy to accurately assess the gap between available house supply and demand. To do so analysts take numerous factors into account including rental vacancy rates, the number of homeless, the level of migration, and various other statistical data from the 2001 and 2006 census.

Somewhat confusing is information in the 2006 Census which recorded 830,000 unoccupied dwellings scattered across Australia. On the face of it this places a large question mark in front of the supply equation and various critiques jumped on the data to form arguments proposing undersupply statistics are myth-based imaginings used by the industry to further fuel an unstainable housing bubble.

Click here for the rest of the article (Source: API Magazine Website)