Australia must build at least 2.48 million new dwellings by 2034 to meet the current and unmet demand for housing. That is according to Forest and Wood Products Australia (FWPA), which projects that demand for structural softwood will peak at more than 2.5 million cubic metres in 2027.
The More Houses Sooner report, authored by IndustryEdge’s Tim Woods, is focused on using timber to fill the gap – and includes ramping up free-standing and multi-residential construction by between 33,000 (current) and 66,000 (current and unmet demand) new builds over historical averages (192,100) to deliver on the country’s ambitious housing targets:
“A key challenge is the increasing reliance on imports, which could approach or exceed 40% of total supply during peak periods,” the report said, spurred by growth in mid-rise (4-8 storey) construction. However, “if demand for free-standing dwellings (also) rises, the need for sawn structural timber is expected to grow significantly.”
FWPA’s More Houses Sooner report.
It reports that Australia’s population is projected to hit 31 million by 2034, which, with a decline in house size (to 2.4 people per household), could create a housing bomb. Fortunately, “the forestry and wood products industry is well-positioned to support this shift, providing sustainable materials and innovative solutions for evolving housing needs.”
That includes prefabrication and factory-based manufacturing: “These opportunities offer reduced costs and construction times compared to conventional models,” said Kevin Peachey, FWPA’s Head of the Building Environment. “Systemic change is required; all of Australia will benefit from more efficient use of timber in the built environment, as this will help meet one of society’s most important and pressing needs of building more houses sooner.”
Compiled by integrating historical trends in housing affordability, disposable income, and population: “Other reports focus on projecting ABS building activity data, such as dwelling approval, commencement, and completion, without involving other indicators relevant to housing issues,” Mr Woods said. “Using an integrated analytical approach, this report provides practical pathways to fill the housing supply gap.”
Historically, Australia produced an average of 192,100 dwellings per year over the decade to 2024. The More Homes Sooner analysis indicates that Australia can deliver the additional 2.48 million dwellings the nation requires over the coming decade to meet the demand.
- To find out more, download the More Houses Sooner report from the FWPA website.
