There is raging debate on whether Australia is experiencing a housing shortage. The construction industry and real estate professionals argue that there is a critical shortage, while non-aligned organizations such as Prosper Australia disputes the claim. The arguments for an existing shortage According to the most recent report on Australian Performance of Construction Index (Australian PCI)from the Housing Industry Association (HIA), a shortage in quality housing continues to be an issue with a 45.9 points reading in April this year. Readings below 50 is an indication that there is a decrease in building activity. If this condition continues, the HIA foresees that the aggregate housing shortage in Australia will hit 466,000 dwellings by 2020. Housing growth not commensurate to population growth An argument that advances this claim is coming from a Bloomberg article which cited a Commonwealth Bank Report that stated that based on an ABS Australian Demographic Statistics Sep...
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