Bulletin – September Quarter 2012
Supply-side Issues in the Housing Sector
Wing Hsieh, David Norman and David Orsmond
Supply-side factors can affect the responsiveness of new dwelling construction to changes in housing demand. Recent reports and liaison with industry participants point to a range of supply-side rigidities in the Australian housing market, including the length and complexity of the planning process, issues related to the provision and funding of infrastructure, land ownership and geographical constraints, and other challenges related to infill development. In recognition of this, governments have made some progress in addressing these concerns.