The housing supply crisis in Perth, Western Australia is causing developers to struggle to keep up with the ongoing demand for housing. According to the latest data from the Urban Development Institute of Australia, the number of available lots on the market is at its lowest level since 2006, with only 617 lots available as of March 31. This represents a 70% decrease compared to the same time last year, with a 34% decrease from the previous quarter. The drop in supply is accompanied by a significant increase in demand, with a 30% increase in lots sold during the March 2024 quarter and a 135% increase over the year.
Chief executive Tanya Steinbeck stated that the surge in sales numbers reflects the continued demand for housing in Perth, driven by strong economic conditions, a growing population, and relative affordability compared to other cities. However, Perth, like other cities across the country, is facing a severe housing supply shortage as a result of years of systemic failure in strategic planning to ensure a sustainable pipeline of housing supply. Despite an increase in construction activity, the supply shortfall is expected to persist well into 2025, with a projected shortfall of 30,000 homes over the next five years.
The housing crisis in Western Australia is predicted to be deep and long-lasting, with no immediate solution in sight. The significant decline in available lots on the market, coupled with a surge in demand, has led to a sharp increase in sales numbers, highlighting the ongoing housing shortage in Perth. Steinbeck emphasized the need for strategic planning to address the systemic failure in ensuring a sustainable housing supply pipeline. Despite an increase in construction activity, the supply shortfall is expected to persist, with a projected shortfall of 30,000 homes over the next five years.
The shortage of housing supply in Perth has been exacerbated by a combination of factors, including strong economic conditions, population growth, and relative affordability compared to other cities. The housing crisis in Western Australia is a reflection of the broader issue facing cities across the country, as they grapple with acute shortages in housing supply. Despite efforts to increase construction activity, the supply shortfall is expected to continue, with a forecasted shortfall of 30,000 homes over the next five years. Strategic planning is needed to ensure a sustainable pipeline of housing supply to meet the ongoing demand in Perth and other cities facing similar challenges.
The ongoing housing supply crisis in Perth has led to a significant drop in the number of available lots on the market, with just 617 lots available as of March 31, the lowest level since 2006. The dramatic increase in demand for housing has resulted in a 30% increase in lots sold during the March 2024 quarter and a 135% increase over the year. Despite an increase in construction activity, the supply shortfall is expected to continue, with a projected shortfall of 30,000 homes over the next five years. Strategic planning is needed to address the systemic failure in ensuring a sustainable pipeline of housing supply to meet the growing demand in Perth and other cities facing similar challenges.
