‘Perfect storm of headwinds’: Australia faces housing construction pressure

Australia has encountered a “perfect storm of headwinds” making it very difficult to deliver the amount of housing the country needs, according to REA Group Executive Manager of Economic Research Cameron Kusher. After rising 5.5 per cent last year, capital city home prices will come under more pressure this year unless the expected interest rate cuts turn up in a timely manner. The ongoing lack of home construction is adding more pressure on the supply side which could push up prices even further. “The challenge at the moment, ultimately in the market, is that the cost of building new homes has gone up significantly,” Mr Kusher says. The federal government aims to deliver 1.2 million homes over the next five financial years. Mr Kusher says there is “a lot of work to be done” if the Australian government hopes to achieve its housing target. In partnership with REA