A new report commissioned by Forest and Wood Products Australia (FWPA) has projected that Australia needs to deliver approximately 2.48 million new dwellings by 2034 to keep pace with population growth, address historic unmet demand, achieve affordability, and fix the housing crisis.

Titled ‘More Houses Sooner’, the report projects the total dwellings required by 2034 in order to reach equilibrium and affordability levels, equating to roughly 225,400 new dwellings per year. Australia’s housing demand is primarily driven by the growth in population, which is projected to touch 31 million by 2034.

FWPA provides scenarios for filling the housing supply gap by increasing timber use in multi-residentials and encouraging builders to adopt more prefabricated home solutions.

Increasing timber usage in construction can help address the current imbalance of supply and demand, says FWPA head of Built Environment Programs, Kevin Peachy.

“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. 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,” Peachy explained.

Lead researcher Tim Woods says the report was compiled by integrating historical trends in housing affordability, disposable income, and population 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.”

Historically, Australia produced an average of 192,100 dwellings per annum over the decade to 2024. The More Homes Sooner analysis indicates that Australia can deliver the additional 2.48 million dwellings required over the coming decade to meet the demand.

The present housing crisis presents opportunities for Australia’s forestry and wood products industry, which can provide sustainable materials for construction, support efficient housing supply, and contribute to a future where more Australians can realise the dream of owning a home.

Download the report.

Image source: https://fwpa.com.au/

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