The Housing Supply Problem Is Real And It’s Costing Buyers Right Now
Australia has a housing shortage. That’s not new. But what’s new is that the country’s own Productivity Commissioner has now made it official, housing supply is Australia’s number one priority. And the findings are pretty hard to ignore.
According to the Productivity Commission’s latest research, it now takes roughly twice as long to build a home in Australia as it did 30 years ago. Construction productivity has more or less stalled. Planning approvals are slow. Regulations are tangled. And the industry itself is too fragmented to move fast enough.
The result? Australia is on track to deliver around 938,000 new homes by 2029, when the actual target is 1.2 million. That’s a shortfall of more than 260,000 homes. And demand isn’t slowing down.
What does this mean for buyers?
Less supply means more competition. More competition means prices hold firm, or keep climbing, even when the market feels uncertain. If you’ve been sitting on the sidelines waiting for supply to catch up to demand, that wait is likely to be longer than expected.
The Commission has pointed to some real bottlenecks: zoning restrictions, slow council approvals, and complex regulations, all things that make it harder and more expensive to bring new properties to market. Until these get fixed at a policy level, the gap between what’s needed and what’s being built is going to stay wide.
There’s also something worth noting in the public conversation around this report. Many Australians feel the issue isn’t just supply, it’s where supply is being built. Outer fringe developments with little infrastructure don’t solve the demand for well-located, liveable properties. The demand for homes close to schools, transport, and employment centres continues to outpace what’s available.
Why acting now makes sense
At D’MANSHA, we work with buyers every day who are trying to make sense of a complicated market. And here’s what we’re seeing: the buyers who do their research, understand the fundamentals, and move with strategy are consistently coming out ahead.
When supply is tight and new builds are delayed, well-located existing properties tend to hold their value strongly. They also attract quality tenants if you’re investing. In a market where the fundamentals are pointing toward continued undersupply, waiting for the “right moment” often means paying more later.
This isn’t about rushing a decision. It’s about making a smart one with the right guidance, the right data, and a clear plan.
Whether you’re a first home buyer trying to break into the market, or an investor looking to build a portfolio, understanding where the supply gaps are, and where genuine demand exists, is what separates a good purchase from a great one.
We help you do exactly that. Our buyer’s advocacy process is built around finding properties that perform, not just properties that are available.
Ready to talk?
If you want advice and suggestions on what to do in this situation, we at D’MANSHA are here to help you. You can call us at 0406 11 22 44 or book your free session here. Don’t forget to follow us on LinkedIn and Instagram as well.