Adelaide’s Housing Shortage Deepens as Melbourne’s Property Market Gains Appeal

Adelaide’s housing shortage continues to intensify, with population growth outpacing new home construction. Despite reports of record building approvals, approvals do not necessarily translate into completed homes, leaving housing supply under increasing pressure. Melbourne presents a different opportunity. Following a period of oversupply and population movement away from the city, excess housing stock is gradually being absorbed. Property prices remain relatively affordable, with some existing homes available at significantly less than their replacement cost. These conditions could indicate strong potential for future price growth. Rising construction costs are making new housing increasingly expensive. Bricklaying costs have reportedly increased from approximately $1 to $4 per brick, while brick shortages in Western Australia highlight ongoing supply constraints. Labour-intensive trades such as bricklaying, carpet installation and sheep shearing also face considerable physical demands, adding to the challenges of the construction and agricultural industries.