Labour Shortages To Affect Housing Targets

The latest Intergenerational Report forecasts average GDP growth will be lower than predicted in the next 40 years. The report is a Federal Government long-term planning document. It predicts growth will be 2.2% per year in the next four decades, lower than the 2.6% it previously forecast.

HIA Senior Economist Tom Devitt says the downward revision is driven by a projected decline in population growth to just 1.1% per year for the next 40 years. Population growth was 1.4% per year in the previous 40 years. “Slowing population growth, combined with the added pressures of an ageing population, will make it harder to find the skills we need,” he says. “Shortages of skilled labour have constrained the home building industry for much of the past 20 years. We need to look at ways to boost the housing sector’s capacity to ensure we are able to meet the Australian Government’s recently announced housing targets.”