In this article, CoreLogic Economist Kaytlin Ezzy explores Australia's unit market and the looming shortfall in median-high density housing stock.
The medium to high-density sector has increasingly become an important part of Australia's residential real estate market, with units steadily making up a larger portion of Australia's housing stock. In August, CoreLogic estimated that units made up 25.9% of national housing stock and around 30.4% of Australia's capital city housing stock, up from 19.6% and 22.9% at the start of 2010, respectively.
The continued reliance on the unit sector to deliver fresh housing stock is particularly evident across some of Australia's largest capitals, including Sydney and Melbourne, as well as the ACT, where limited land supply has made further development of low-density dwellings increasingly difficult.
The medium to high-density sector is increasingly becoming an important tool in delivering additional housing stock for Australia's growing population, especially as households continue to congregate in metropolitan areas.