Supply shuts buyers out of australian housing market

A lack of policy reform in Australia's construction sector is shutting buyers out of the market, despite record levels of home building.

A new report from the Housing Industry Association highlights a record level of home building activity. While new housing construction is "single-handedly propping up Australia's domestic economy", though, supply still falls short of the demand for new home.

"On-going momentum in 2015 is narrowly driven compared to last year, in terms of both geographical area and dwelling type - it’s far from a universally strong story," says HIA Chief Economist, Dr Harley Dale.

"It is disappointing that despite record new housing supply, many Australians are being priced out of the market due to the excessive and inefficient taxation and regulation governments’ impose on the new housing sector."

"Super low interest rates are doing their job, but there is a lack of complimentary policy reform," Dale adds. "he detached house construction cycle had peaked well below its potential because households can’t pay the cost of waiting up to 14 months for titled land, or multiple months for a simple building approval, or borrow the additional amount required to cover government-imposed gold-plating of user pays infrastructure."