Australia’s housing undersupply continues to be one of the biggest challenges facing our property market.
According to NHSAC projections for the Housing Accord period (2024/25–2028/29), Australia is forecast to fall short of the 1.2 million new homes target by approximately 262,000 dwellings.
This growing supply gap is creating increased competition for limited housing stock across the country, placing ongoing upward pressure on both property prices and rents - with housing costs continuing to outpace wage growth.
The impact is already being felt across households nationwide:
* Buyers facing reduced borrowing power and affordability challenges
* More Australians staying at home longer into their 30s
* Increased shared accommodation and rental competition
* Lower vacancy rates and continued rental increases
* Limited opportunities for buyers to purchase quality property at discounted prices during market downturns
The banner below highlights the projected housing supply shortfalls across every Australian state and territory.
NSW, QLD and WA are expected to experience some of the most significant shortages, which may continue to support long-term price growth and create strong opportunities for strategic property investors and discerning buyers.
Australia’s housing supply challenge is no longer just a property issue - it’s becoming a major economic and social issue that will shape the market for years to come.
