State of the Environment

2006

Indicator: HS-78 Housing demand

Data

Dwelling Types– Australia – 1991-2001
1991 1996 2001 1991-2001
N ('000) % N ('000) % N ('000) % % change
Separate House 4534 78.6 4912 75.6 5327 75.3 17.5
Medium Density 453 7.8 517 7.9 632 8.9 39.5
High Density 658 11.4 817 12.6 923 13.0 40.3
Total (occupied) 5765 100.0 6496 100.0 7072 100.0 22.7

Source: Australian Bureau of Statistics 2005, Canberra (unpublished data prepared by the ABS for SoE 2006)

Median House Prices in Capital cities Yearly average of quarterly prices 1980-2004

Median House Prices in Capital cities Yearly average of quarterly prices 1980-2004

Source: Real Estate Institute of Australia, 2005

Housing Loan Affordability Index - Annual averages for Capital cities 1990-2004

Housing Loan Affordability Index - Annual averages for Capital cities 1990-2004

Source: Real Estate Institute of Australian, 2005

Estimated additional demand for dwellings ('000s) Australia 2002-2011
State/Territory Total Separate Houses Other Dwellings Private Dwellings Public Dwellings
NSW & ACT 335 216 119 310 25
Victoria 265 183 82 255 10
Queensland 306 214 92 293 13
South Australia 51 28 23 42 9
Western Australia 171 126 45 160 11
Tasmania 6 2 4 5.4 0.6
Northern Territory 15 9 6 12 3
Australia 1 149 778 371 1 077.4 71.6

Source: McDonald, P 2003, Medium and long-term projections of housing needs in Australia: final narrative report, Australian Housing and Urban Research Institute, Canberra.

Housing Utilisation by tenure type
Australia - 2001
Canadian National Occupancy Standard
Selected tenure of dwelling Average number of persons per bedroom a One or more spare bedrooms (%) No spare bedrooms (no extra needed) (%) Proportion of overcrowded dwellings (%)
Fully owned 0.77 84.9 12.8 2.4
Owned with a mortgage 0.95 77.4 19.6 3.0
Rented 0.97 56.3 35.8 7.9
    Public sector rental 1.00 49.1 43.5 8.5
    Private landlord 0.96 58.8 34.5 7.8
    Other b 1.03 51.6 39.2 10.4
Australia c 0.85 74.5 21.3 4.2

a - Based on counts of usual residents
b - comprises employer landlords, community or co-operative housing groups, and other types of landlords
c - includes other forms of tenure such as being occupied rent-free, being occupied under a life tenure scheme and other tenure types.

Source: Australian Bureau of Statistics 2001, Australia in Profile: A Regional Analysis, ABS, Canberra.

What the data mean

Demand for housing increased between 1991 and 2001 by 22%; the demand for high and medium density housing was higher (around 40% for both) than for separate houses (18%).

The demand for housing is reflected in the increase in house prices in all capital cities over the two decades from 1980 to 2004, with prices in Sydney showing the highest increases followed by those in Melbourne. This continual rise in house price was despite the variable changes in housing affordability.

It has been estimated that Australia will need an additional 1.15 million new dwellings between 2002 and 2011 (McDonald 2001). Two thirds of these dwellings will be separate houses.

Overall, 4% of households in Australia experience overcrowding as measured by the Canadian National Occupancy Standard measure. Overcrowding is largely restricted to the rental sector.

Issues for which this is an indicator and why

Human Settlements — Pressures created by human settlements on the environment - Patterns of settlement 

Demand for housing is an indicator of the pressure to build more housing, placing increasing pressure on the environment through the direct displacement of habitats and as a result of increasing other pressures of human settlements.

Other indicators for this issue:

Further Information

Source: McDonald, P 2003, Medium and long-term projections of housing needs in Australia: final narrative report, Australian Housing and Urban Research Institute, Canberra.

Australia in Profile - A Regional Analysis, 2001 

Housing Occupancy and Costs, Australia, 1997-98 

Key

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