The house industry’s biggest growth driver over the past decade is a growing number of people buying properties in large numbers, according to a new report.
Key points:The industry accounts for up to $US30 billion ($38.3 billion) of Australia’s $US700 billion real estate marketThe numbers show that house prices are soaring at a faster pace than jobs and the economyAs Australia’s population continues to grow, the number of Australians buying property has surged from just over 3 million in 2009 to more than 5 million now.
Key findings:The numbers indicate the real estate sector is the biggest driver of the growth in Australia’s real estate industry over the last decadeThe Australian Bureau of Statistics has estimated that the real house market is on track to grow by more than 10% a year by 2037, up from less than 5% a decade ago.
It is the fastest rate of growth in the industry’s history, and the report from the Australian Real Estate Association (ARIA) says this growth will continue over the next decade.
“We are witnessing the first real house bust since the 1970s,” the ARIA’s chief executive, Nick Caulfield, said.
“It’s time to get the economy going again, it’s time for a real property boom.”
The ARIA also projects the number will grow to more like 4 million by 2039, up almost two-thirds from its current 2.5 million figure.
The figures for housing affordability and the housing affordability crisis are similar, with the latter being driven by people choosing to rent rather than buy.
“House prices have risen at a more rapid rate than the unemployment rate and GDP growth, which are two major drivers of the real property market,” Mr Caulfields said.
“But we are not just seeing house prices growing, we are seeing people buying.”
The report says the housing sector accounts for around 30% of Australia.
The report says there is a big potential for growth in this sector over the medium term, especially if more people choose to rent instead of buy.
The report points out that the number and rate of buyers has also risen significantly in recent years.
In 2017, there were 1.4 million houses and flats sold in Australia, compared with around 1.3 million in 2017.
This means that the housing market is likely to grow in line with the broader economy over the long term, with house prices increasing in line, for example, with wage growth and inflation.
“The number of buyers is likely going to accelerate with the number, the rate and the size of the buyers,” Mr Lonergan said.
“If you look at a real estate company, there is no doubt that the growth of the house market has been an area of focus over the years.”
He said there was a lot of room for growth for the housing industry in the longer term, noting the housing shortage was already slowing in the last few years.
“In the next few years, the housing demand is going to be even more robust, because we are expecting a number of supply shortages,” he said.