Australian rental crisis will get worse as construction fails to keep pace with demand, report says

The national housing report, released on Monday, says rising interest rates have reduced supply of new homes

• Get our morning and afternoon news emails, free app or daily news podcast

Australia’s painful rental crisis will get worse in the coming years, a new report says, due to a shortage in supply of new houses and units caused by costs and ongoing constraints in construction.

In its third report on the state of the nation of housing for 2022-2023, released on Monday, the National Housing Finance and Investment Corporation (NHFIC) said banks increasing their interest rates earlier relative to the Reserve Bank of Australia guidance had reduced the supply of dwellings.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup