boom in affordable housing

The demographics all point towards a BOOM in affordable housing.

Here’s a brilliant report from Craig James (4 June 2009) from Comsec who I think is one of the most practical and realistic economists in Australia.

The bottom line: This is good for Bectons’s long term future because many more houses will be required and at the bottom end of the scale...that’s social housing, an area where Rudd has committed some $6.4bn.

Here’s James’ report:

Australia is experiencing the biggest migration boom in history with 253,415 migrants arriving in 2008.

Australia’s overall population grew by 1.91 per cent over the year – the fastest rate of growth in almost 40 years.

Not only is Australia experiencing a migration boom but also a baby boom. In 2008 a record 296,700 babies were born – the most since quarterly records began 27 years ago.

Both Victoria and Western Australia are recording the fastest population growth in around 40 years.

NSW population growth is the fastest in almost 20 years.

What does it all mean?

Not only does Australia have the fastest growing economy of major developed nations, but it also has the fastest growing population.

Over the past year Australia’s population grew by 1.9 per cent, significantly eclipsing growth of 0.8 per cent in the US and 0.3 per cent in the UK.

In simple terms if there are more Australians, there need to be more homes, schools, roads and hospitals.

Australia’s fast growing population can be added to the reasons why our economy is performing so well.

All states and territories except the Northern Territory are experiencing faster population growth.

In particular Victoria has the fastest population growth since the mid 1960s while in Western Australia population growth is near 40-year highs.

Even NSW is experiencing the rising tide of people, with population growth close to the fastest rate seen in 20 years.

Fast population growth benefits the economy in boosting labour supply, retail spending and lifting overall economic momentum.

But Australia’s rapidly expanding population will continue to place demands on our social and economic infrastructure.

Not only are more migrants coming to our shores, but more babies are being born. The sharp lift in the number of births will translate to an increased demand for child-care places over the next five years, and a greater demand for school places over the next 5-20 years.



What this means for Becton is the opportunity to build more homes at its already established “affordable housing” projects at Kensington and Bonnyrigg where it is also hooked up with the Victorian and NSW governments respectively.