LP.com

Terry Rawnsley, KPMG's demographer and Director of Planning and Infrastructure Economics, raised key issues in a recent discussion, emphasizing the adjustment of housing supply based on actual housing needs and demographic structure to better meet the residential needs of every household. However, high rents are currently forcing many people to reconsider their housing choices, leading some families to opt for shared living arrangements or even encouraging individuals to accept shared accommodation or delay independent living.

Assistant Governor Sarah Hunter of the Reserve Bank of Australia sparked in-depth discussions on family size issues during a recent speech at the Australian Property Institute's centenary conference. She noted that if each household's demographic structure resembled that of 40 years ago, Australia might not need to add 1.2 million housing units. Currently, Australia has approximately 11 million households, accommodating a total population of nearly 27 million. The average number of people per household has decreased from around 2.8 in the mid-1980s to about 2.5 recently, a subtle change that significantly impacts housing market demand.

Internet

The latest "National Housing Conditions" report from the National Housing Finance and Investment Corporation predicts a shortfall of approximately 157,000 housing units in Australia by 2027. This forecast has raised concerns across society about housing policies and the balance of supply and demand in the market.

Rawnsley further pointed out that many current housing issues stem from changes in people's lifestyles. Low birth rates mean fewer residents per household, while changes in living patterns during the COVID-19 pandemic and the return of international students and immigrants have driven an increase in housing demand.

Independent economist Harley Dale noted that while housing issues are evident, their resolution is highly complex. He emphasized that identifying the existence of a large number of vacant houses is one thing, but effectively utilizing this space is another. Governments can encourage people to choose more appropriately scaled housing through tax incentives and increased construction of small apartments, but they face challenges in affordability, such as who can afford larger homes with four bedrooms.

Internet

Professor Peter Phibbs, Director of the University of Sydney's Urban and Regional Planning and Policy Department, believes that the rise of remote working is reducing the size of households. He noted that if only a few households adopt this approach, it could significantly reduce housing demand. Phibbs also suggested that governments consider using the large number of short-term rental properties in the vacation accommodation market to alleviate pressure on the long-term rental market.

Recent census data shows that Australia has at least 3.5 million vacant bedrooms, often found in households unwilling to downsize. However, research indicates that these bedrooms are frequently used as home offices or creative spaces, a major barrier to households reducing their size.