Housing crisis: High costs strangle new supply

"As such, it is unlikely we will see a material rise in new housing activity until interest rates fall. While efforts to cut red tape, increase densities around transportation hubs and generally make the development of new housing easier are a positive, we don't expect them to make a material difference until affordability improves." Added on to the pre-existing shortfall, we expect the cumulative shortfall of homes to reach around 200,000 by June. — Shane Oliver, AMP chief economist Australia looks increasingly likely to fall short of the federal government's target of 1.2 million new homes over the next five…