House prices and rents are expected to rise in 2010

Without the required new home building to keep up with underlying requirements, house prices and rents are expected to continue pushing upwards through 2010, according to Housing Industry Association (HIA).

The association is forecasting a moderate housing recovery in 2010 with about 152,000 dwelling starts.

But that’s still below the 190,000 required to keep pace with Australia’s population growth.

A necessary boost to housing supply was being held back by increased regulation, a slow and increasingly restricted building approvals process and the same debilitating problems to land supply, new home taxation, and skill shortages that afflicted the industry last cycle, Housing Industry Association said.

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