Critically, CEDA's chief economist, Cassandra Winzar, highlighted that the housing sector's issues in Western Australia stem from a shortage of labour, alongside high levels of red tape in construction and complicated local governance concerning planning and zoning. These factors significantly hamper the speed and efficiency of housing development in the region.
Winzar emphasised the urgent need to improve productivity in construction by tackling the considerable workflow impediments at both industry and government levels. Western Australia's construction timelines lag behind other states, primarily due to workforce deficiencies.
Against this backdrop, the state's population has burgeoned by 245,000 over the last three years, predominately fuelled by net overseas migration. This population boom, compounded by inadequate housing completions, poses a growing challenge for the state government, as housing supply struggles to keep pace with demand.
Amid such population growth, forecasts suggest that Western Australia could see an increase of 776,000 individuals by 2036, largely owing to continued migration trends. Yet, only 20,500 homes were completed last year despite substantial population surges, underscoring the disparity between supply and demand.
This phenomenon isn't unique to Western Australia. Nationally, Australia has also seen a dramatic increase in migration over recent decades, further amplifying housing demand. The NHSAC warns that unless population growth stabilises, the country's housing crisis could deepen, projecting a shortfall of 79,000 homes over the next five years.
Experts argue that the solution lies in moderating immigration levels to align with housing supply capabilities. By adopting a sustainable and balanced immigration strategy, both state and federal governments could alleviate the intense pressure on housing markets.
Therefore, addressing this imbalance requires targeted interventions that not only enhance housing supply but also strategically manage population growth to ensure long-term sustainability in the housing market and broader economic stability.
