In a report released on 1 March 2013, the National Housing Supply Council has highlighted the impact of the shortage of low-cost housing on the more vulnerable in our population: households that are dependent on government incomes, households living at the lower end of the private rental market, and would-be homepurchasers with low and insecure incomes. The council stated:

A sustained shortfall in housing production relative to population growth (the main component of additional underlying demand) ‘trickles down’ through the distribution of income and wealth. It affects most the people who lose in the competition for available properties. These people may end up renting when they expected to become home owners, not forming a separate household because they cannot find anywhere suitable to live, needing government subsidies to obtain housing, pushing others — or being pushed — out of the private rental market and into social housing, living in unsuitable housing or overcrowded conditions, or becoming literally homeless. If the level of underproduction is substantial, it affects progressively more people who are relatively affluent. If underproduction varies across cities or States, then more ‘footloose’ economic activity, jobs and people will move from areas of deficit to areas where housing and workforce opportunities are in better supply. (page 127)

Read the report, Housing supply and affordability issues 2012–13.