27 million and counting

The Australian Bureau of Statistics' (ABS) population clock ticked over 27 million around 3.45pm AEST on Wednesday, January 24. This incredible milestone reminded me of a similar headline in 2018. At the time, we were in Melbourne exhibiting at an annual trade show. Despite the late hour, I recall lying in bed watching the clock tick over 25 million. It's hard to fathom that, less than six years later, another two million people live in Australia.

The country's population has grown by an extraordinary 624,100 over the past 12 months. That's equivalent to adding the entire population of Tasmania (572,800) in just one year. This rapid growth easily exceeded the previous record of 442,500 set in 2009. 

Therefore, it's no surprise the nation is experiencing a massive housing shortage. The strain is present everywhere you look. The national rental vacancy rate was 1.09% in January, falling 0.04 percentage points over the month. In Sydney, the rate dropped to 1.20%, while the median price for rentals in the city hit $900 a week, up 20% on the previous year. Perth still maintains the lowest vacancy rate in the country at 0.76%. Meanwhile, rental affordability is at its lowest in at least 17 years.

The Federal Government is currently working with the States to build 1.2 million new homes over the next five years.  As part of this initiative, New South Wales is committed to building more than 380,000 homes, or 75,000 homes annually.  However, with high-interest rates and rapid inflation dogging the construction sector, it's no surprise this target isn't anywhere close to being met. 

Here at home, we're already feeling the impact of these market dynamics. Our apartment building is currently tendering for retrospective repairs to its fire protection infrastructure. Over the last two years, quotes for these works have increased by a third. We're now scrambling to find another $200,000 to get them underway. 

In the current economic climate, how can any first-home buyer afford to build, let alone buy, a home?  Affordable housing is a pressing national policy issue. It'll be interesting to see how bold politicians will be as they strive to solve the current crisis.