The Frame & Truss Manufacturers Association (FTMA) together with Tim Woods of IndustryEdge have put together a briefing on measuring the demand-supply gap in housing. Sources: FTMA, IndustryEdge, Timberbiz
This six-page overview discusses:
- Australian dwelling approvals by type
- Annualised dwelling approvals: houses v total
- Sawn softwood sales v house & townhouse approvals
- House & townhouse approvals and annual average sawn softwood use
- Saw softwood demand, supply & implied gap.
Every time a house or townhouse is approved, the Australian economy will consume 23 m3 of sawn softwood. Local supply is capacity constrained at around 3.2 million m3 per annum, or using this analysis, equivalent to about 139,000 house and townhouse approvals. The rest must be supplied by imports.
The report states that the tight timber market may not dip into the more comfortable supply zone until some point in 2023. Another round of rampant fiscal stimulus could affect this date, or if the hardware and other supplies that are under pressure cause significantly more delays.
Read the report to here:FTMA-Housing-Report-10