A landmark report has revealed that Australia needs to construct approximately 2.48 million new dwellings by 2034 to achieve housing affordability and equilibrium.
The study, titled “More Houses Sooner,” is claimed as the first of its kind to comprehensively estimate the number of dwellings required over the next decade to address both population growth and historic unmet demand.
This translates to an annual target of around 225,400 new dwellings, as revealed in a news release.
Commissioned by Forest and Wood Products Australia (FWPA), a not-for-profit organisation, the report explores strategies to bridge the housing supply gap.
Among the proposed solutions are increasing the use of timber in multi-residential buildings and encouraging the adoption of prefabricated housing solutions by builders.
Population growth remains a major factor driving housing demand, with projections indicating a rise to nearly 31 million people and a decline in average household size to fewer than 2.4 people per household.
Kevin Peachy, FWPA Head of Built Environment Programs, highlighted the potential role of timber in alleviating supply constraints.
“There are opportunities and challenges for the industry. Leveraging prefabrication systems and factory-based manufacturing offers reduced costs and construction times compared to conventional methods.”
Peachy explained, “Systemic change is required, all of Australia will benefit from more efficient use of timber in the built environment, as this will help meet one of society’s most important and pressing needs of building more houses sooner.”
Lead researcher Tim Woods noted that the study integrated multiple indicators beyond traditional Australian Bureau of Statistics (ABS) building activity data.
“Other reports in the market focus on projecting ABS building activity data, such as dwelling approval, commencement, and completion, without involving other indicators relevant to housing issues. By using an integrated analytical approach, this report provides practical pathways to fill the housing supply gap,” Woods explained.
Historically, Australia has produced an average of 192,100 dwellings per year over the past decade.
The “More Houses Sooner” analysis suggests that increasing this rate is feasible and necessary to meet the growing demand.
FWPA expressed confidence that the forestry and wood products industry is well-positioned to support efforts to increase housing availability and affordability across the country.
