Population growth highlights demand for new housing

By the resi financial blog team, 19 December 2013

Population growth highlights demand for new housing

Demographic data released by the Australian Bureau of Statistics (ABS) earlier this week (December 17) illustrated the increasing demand for housing as the number of people living across the nation continues to grow.

Australia's population rose to 23.13 million in mid-2013, after adding 407,000 over the year to June 2013 - reaching a growth rate of 1.8 per cent and settling well above the long term average.

There were another 162,656 people added to the population through natural growth (births minus deaths) during 2012/13, an increase of 2.6 per cent over the previous year and a contribution of 0.7 percentage points to the overall annual population growth.

Furthermore, overseas migration was also a huge factor to consider when it comes to the population growth. There was a whopping 8.6 per cent increase during 202/13, growing by 244,371 people.

This contributed 1.1 percentage points to the annual population growth as a whole.

Housing Industry Association Economist Geordan Murray also highlighted that, as the population ages, it will become increasingly important to support skilled migration into the nation in order to continue providing sustainable living standards.

"The ABS population projections show net overseas migration is expected to make a stronger contribution to population growth in future years than it has in the past," Mr Murray said in a December 17 statement.

"The ABS’s mid-range population growth scenario anticipates net overseas migration of 240,000 people per year, which is consistent with the level we saw in 2012/13."

He went on to state that the population has been growing at an above average pace, which is showing no signs of slowing down. Now could be the time to consider taking out a construction loan and beginning investment in potential growth areas today.

Categories: Home Loans, Property Investment