The Unstoppable Force of Undersupply
An infographic for brokers on the key driver of the Australian property market.
The Market Paradox
Despite restrictive RBA cash rates, property values are not falling. They're climbing. This resilience points to a powerful, underlying force at play.
CoreLogic National HVI (Apr 2025)
+0.6%
Experts Forecast Continued Growth
Leading analysts agree: the fundamental pressures will persist, driving further growth. The consensus is clear—the market's upward trajectory is set to continue.
Both KPMG and Domain cite constrained supply as a non-negotiable factor underpinning their positive forecasts.
The 'Why': Australia's Structural Supply Crisis
The National Housing Supply and Affordability Council calls it a "crisis decades in the making." Here’s a breakdown of the numbers behind the government's National Housing Accord.
National Housing Accord: Goal vs. Reality (5 Years)
The Critical Net Deficit
The shortfall is only half the story. The real issue is that we are building far fewer homes than we need to meet new demand and replace demolished stock.
New Demand
904,000
Demolitions
113,000
Total Homes Needed
1,017,000
Total Homes Needed
1,017,000
Projected Built
938,000
Net Supply Deficit
79,000
The housing deficit isn't just persisting; it is structurally worsening.
What This Means For Your Brokerage
Use this evidence to shift client conversations from speculation to strategy.
Reframe the Conversation
Pivot from market timing to personal timing. The "wait for a crash" strategy is flawed. Focus on what clients can control:
- Is the deposit ready?
- Is serviceability strong?
- Does it fit long-term goals?
Advise on the 'Rise of the Unit'
Affordability pressure is channelling demand into the unit market. This is a structural shift, not a temporary trend. Well-located units are a primary strategic pathway for many clients.