Investors Needed To End Shortage Crisis

Attracting more investors to the property market is what will help ease Australia’s housing crisis, according to new research.

The analysis by the Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA), says there is a shortage of property investors, with tens of thousands more needed to help ease the ongoing market issues.

It says Australia fell short of nearly 35,000 property investors over the past five years. Between March 2019 and March 2024, Australia’s population grew by 1.8 million people which the research says necessitates an additional 212,000 rental properties.

This requires an increase of 145,000 investors, but Australian Taxation Office (ATO) data shows only about 111,000 additional property investors entered the market. PIPA chair Nicola McDougall says there are many barriers causing the reduced number of investors and therefore rental properties, including stricter lending policies, regulatory changes and tax increases.

PICA chair Ben Kingsley says investor activity is far below the level needed to house Australia’s growing population.