Caveat on house building: Supplies and labour shortage

Sharon Zollner

While the country’s borders are closed and immigration is virtually non-existent, the country has a chance to catch-up on the housing shortage.

The ANZ Bank’s Property Focus report says the construction industry is running into acute labour and materials shortages, which are boosting costs spectacularly and delaying the rollout of new housing.

The report says it is widely accepted the country’s housing affordability issues fundamentally stem from a lack of houses. ANZ estimates there is a shortfall of 70,000 houses.

That means, depending on the ability of the construction sector to meet demand, it could take another three to five years just to clear the housing shortage that’s accumulated since 2006.