The fact that the nations biggest city's housing crisis is reaching alarming proportions is evident by more houses being built in Adelaide than in Sydney in 2009.
Latest figures received by The Daily Telegraph show that an estimated 7300 new homes will be built in Sydney this year, the lowest rate of growth in more than 50 years and approximately a third of the homes built in 2003.
The bleak projections are in stark contrast to Melbourne, where an estimated 23,000 new homes will be built this year. Meanwhile in Adelaide where the population is one quarter the size of Sydney about 7500 new homes are scheduled, while Brisbane expects 13,450 new homes to be built.
The outlook appears bleak for people renting in Sydney as economists fear that rental properties will shoot up a further 12 per cent in 2009, on top of last year's 8 per cent rise. This increase will take the average rent of a three-bedroom home to over $400 a week.
Analysts have told The Daily Telegraph that Sydney's population is expected to rise by approximately 23,000 this year and with rented properties only at a mere 1.1 per cent, the situation is reaching crisis point.
BIS Shrapnel property research group economist Jason Anderson stated that data had proven that the Federal Government's first homebuyers grant of $21,000 in funding made available for new homes had failed to address the city's essential need for medium to high-density developments and that has dried up because of funding issues. Together with the population growth Jason Anderson stated that he couldn't see how there was going to be anything other than extreme pressure in the rental market.
A report out earlier this month by the National Housing Supply Council estimated that an 85,000 dwelling shortage in June 2008 was expected to grow to 203,000 by 2013.