Believe it or not, Australia has built 1 million homes in the past five years.
We're in the middle of a building boom that has led us to build roughly 200,000 homes each year for the last 5 years.
This is the fastest pace of home building in our history according to research by REA's Proptrack.
They say that between the September 2016 quarter and the June 2021 quarter, which is the most recent data we have, Australia built just over a million new homes.
Now we mostly build detached houses - of the last million homes built in Australia, 55% were detached houses.
But in the past five years, there has seen a surge in apartment and semi-detached construction, which has been responsible for the faster rate of the overall building.
In fact, we are still building roughly as many houses each year as we did in the 1970s.
New homes have been disproportionately built in Victoria.
While Victoria accounts for a quarter of Australia's population, nearly a third of our last million homes were built in Victoria where the population grew at 2 to 2.5% annually – the fastest growth of any state by considerable margin.
New houses are mostly being built in the outer suburbs and in regional areas.
New apartments are mostly in inner Melbourne and Sydney
Apartment development in Melbourne has been particularly concentrated the city centre including Docklands and Southbank.
In Sydney apartment development occurred mainly in Sydney's middle ring suburbs, particularly in locations on major train lines.
What's ahead?
We know with the many government incentives including Homebuilder there has been a surge of new house approvals in the past year, many of which are still under construction.
This means in contrast to the last five years, we will be building more houses and fewer apartments over the next few years.
And we are already seeing some signs of that shift in the types of homes we are building.
COVID has created a nearly two-year experiment with working from home which has led many people to reconsider where they want to live and the premium they put on location versus space.
About Michael YardneyMichael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.
4 comments
Colin Adair2023-03-06 08:56:18
At what point do you realise YOUR BEING LIED TO !! what type of stupid would actually accept - 'In fact, we are still building roughly as many houses each year as we did in the 1970s.' You obviously haven't been outside your house in about 25 years ...Read full version
At what point do you realise YOUR BEING LIED TO !! what type of stupid would actually accept – ‘In fact, we are still building roughly as many houses each year as we did in the 1970s.’ You obviously haven’t been outside your house in about 25 years.
1 million homes in 5 years?? 200000 a year about 16000 a month over 500 a week or over 70 a day??? We build at best 30000 a year or if you go to the ABS website and look at their fiddled numbers about 41000 theres a massive shortage of dwellings all done by design Australia is only country in world that doesn’t have a list of who ultimately benefits from the sale of a property, the only people who will buy here will live over seas or be a criminal