More Houses Sooner is the first and only in-depth study to project the total dwellings required by 2034 to reach equilibrium and affordability levels. The research indicates Australia needs to deliver approximately 2.48 million new dwellings to keep pace with population growth and address historic unmet demand. This equates to roughly 225,400 new dwellings per year.
The report commissioned by Forest & Wood Products Australia’ (FWPA) Statistics and Economics program, provides scenarios for filling the housing supply gap by increasing timber use in multi-residential constructions and encouraging builders to adopt more prefabricated home solutions.
These insights support FWPA’s members and the wider industry to make strategic decisions, and explore these opportunities to grow the market for wood products.
Population growth is a key driver of housing demand, with projections showing nearly 31 million people and a decline in household size to fewer than 2.4 people per household by 2034.
FWPA Head of Built Environment Programs, Kevin Peachey, says increasing timber usage in construction can help address the current imbalance of supply and demand. “There are opportunities and challenges for the industry. Leveraging prefabrication systems and factory-based manufacturing offers reduced costs and construction times compared to conventional methods. 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.”
Lead Researcher Tim Woods says the report was compiled using integrating historical trends in housing affordability, disposable income, and population data. “Other reports in the market focus on projecting ABS building activity data, such as dwelling approval, commencement, and completion, without involving other indicators relevant to housing issues. By 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 annum 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.
FWPA is confident that the forestry and wood products industry is uniquely placed to contribute to a future where more Australians can realise the dream of owning a home.
