Sydney is facing a housing deficit that will rise by 190,000 homes within 10 years unless local councils accelerate the number of new approvals, according to a new Property Council report.

In the first decade since housing targets were set for councils, they have fallen short by 51,000 homes – or 23%. Only five councils have kept pace with population growth.

The report forecast that Sydney will be short 190,000 homes in 10 years time. The big priority is faster rezoning for urban renewal along transport corridors, old industrial land and town centres.

With demand exceeding supply, prices of all homes will contnue to increase above natural trends. 

Ageing Australians who downsize will receive inflated values for their large family homes, giving them extra funds to bid for for their new homes.

Retirement villages are experincing the same challenge. In 2014 just 2,000 new retrement village homes were built against a demand of 5,500. With the increasing aged population this gap is forecast to just increase.

The outcome is that cashed up buyers who are downsizing are bidding up the priece of existing retirement village homes.