In new data released by the Housing Industry Association, new home building is predicted to fall by around 20% state-wide in the December quarter.  On the Gold Coast however – one of the state’s fastest growing area – the fall is tipped to be as high as 30%.  This drop will contribute to a state-wide shortage of 11,000 homes in this financial year alone.

Instead, Queenslanders are renovating more, with a 19% increase in renovations over the past three years and predicted increases of around 13% for the next three.

This information conincided with figures from the Australian Bureau of Statistics showing a 32% fall in the number of Queenslanders taking on mortages in the year from June 2007 to 2008.

With the region – and indeed the entire state – experiencing record population growth and low rental vacancy, these trends will only worsen the housing shortage and cause vacancies to fall and rents to rise further.  While the figures are perhaps daunting for those who are currently renting and potentianl new home buyers, those already in the market look set to enjoy strong future capital or investment income growth.

Tags: Facts & Stats, General Links, gold coast, housing undersupply, news

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