REINSW CEO Tim McKibbin says the disparity between demand and supply is set to get considerably worse, putting unprecedented pressure on a housing market already unable to cope.

A Government Inquiry into the inhibitors of housing supply is needed “yesterday”, he says.

“REINSW is calling for an immediate and expeditious Inquiry into the inhibitors of supply and then a brutal action plan involving industry and Government to implement the recommendations,” he says.

“The community is sick of all the talk on this issue. It’s time for action and this means Government and industry working together now.”

While the REINSW welcomes expanded support for first home buyers under the Home Guarantee Scheme, the announcement, as well as the anticipated arrival of about 400,000 people from overseas in the next year, elevates the urgency of a major, fast-tracked supply action plan.

“These demand-side impacts need to be balanced by supply-side solutions. Every aspiring first home owner and everyone who arrives on our shores needs and deserves a home, but these homes simply aren’t available,” Mr McKibbin says.

“Higher house prices and rents are an unavoidable market consequence of a housing shortfall, and without more social and affordable housing, increased homelessness is a catastrophic social consequence.”

According to Mr McKibbin, with a resumption in property price growth many people aspiring to buy a home may feel their dreams are moving further out of reach.

“There is already evidence of prices beginning to rebound and we need to remember that the bull- run through the pandemic typically pushed median prices up between 20% and 30%, depending on the area,” Mr McKibbin says.

“The rebound in house prices is no surprise. The lack of supply is the primary enemy of affordability,” he says.

Of course, building the many thousands of homes needed in the state takes time. In the meantime, Mr McKibbin urges Government to focus on measures which can have a positive impact in the community now.

“Incentivising empty-nesters to move to more appropriate smaller dwellings will make better use of the existing homes in the market and this should be an absolute priority for Government,” Mr McKibbin says.