Rise in population is causing housing shortage, and now this problem is waiting for Queensland. The shortage of houses will be presenting the state with a very significant problem, with the demand outracing the supply, and first-time home buyers facing the increasing risk of being priced out of the market.

The Urban Development Institute of Australia says that the state would face shortage of 50000 houses with this heavy rise in population by next middle year. Some figures show that housing approvals dropped 25 per cent on average for the decade while net overseas migration - the big mover - is running at six times the rate of

1990 levels.

The problem is being blamed by developers on the authorities' "go-slow" when it comes to approving land releases, but the local governments have been quick to defend themselves by insisting that there is enough land available to meet all the housing demand.

"Population growth, driven by overseas migration, is creating a demand for housing that is nowhere being matched by constrained dwelling production", the report said.

UDIA chief executive Brian Stewart says that developers are also facing difficulties as the land prices are much higher than ever and the availability of finance is also hindering the process.