| By :
Nadine Davis
Copyright (c) 2010 Nadine Davis There are fewer houses available than ever in Australia right now. What happened? How did we get here? To understand why there is a housing shortage in Australia, you have to look at several different factors. You can learn more of the basics about this phenomenon below More People Means Fewer Houses: Migration is one of the leading causes of the current housing shortage in Australia. Between 2007 and 2008, for instance, the population of Australia grew by approximately 400,000 people. It is estimated that 60% of those new arrivals came from overseas. As this country experiences higher migration rates from overseas, less and less houses are readily available - unless new ones are built, of course, which doesn't seem likely to happen very soon. Less Lending Means Less Building: Builders are being stymied by the reluctance of lenders from around the country to approve financing for new construction. Were it not for the difficulty of getting new loans approved, a boom in the housing construction market would be happening right now. New building would be good news not only for people who are looking for homes, but for property investors as well. In general, buyers agents are eager for home construction to increase. Although it will drive prices down, it will also increase demand and more people would be in the market for new homes. Fewer People Living In Each Home: In years past, a single dwelling would be the home of several people. In fact, multi-generational housing situations used to be quite common. These days, though, more and more people are living on their own. Divorces have increased, and this means that less and less families live together in the same dwelling. All of this means that more homes are being occupied by fewer people - and that helps contribute to the overall shortage. Will things swing back the other way, with more people living in one home? Only time will tell. The Bottom Line: The bottom line concerning the current housing shortage in Australia is that it has driven prices - and demand - up. This is music to property investors' ears, since investing in property now almost assuredly means significant profits down the line. Still, caution is always necessary and having the right help is imperative. To that end, a buyers agent is definitely one of the very best ways to go. Whether you're looking for a home to live in - or for one to invest some money in - you should consult with an experienced buyers agent for advice.
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