Boosting property investment is key to tackling Australia’s housing crisis, according to new research.

A report by the Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA) highlights a significant shortage of property investors.

Tens of thousands more are needed to address ongoing market challenges.

The analysis reveals Australia fell short by nearly 35,000 property investors over the past five years.

Between March 2019 and March 2024, the nation’s population grew by 1.8 million, requiring an additional 212,000 rental properties.

However, data from the Australian Taxation Office (ATO) shows only about 111,000 new property investors entered the market—45,000 fewer than needed.

PIPA chair Nicola McDougall says reduced investor numbers stem from barriers such as stricter lending policies, regulatory changes, and higher taxes.

PICA chair Ben Kingsley warns that investor activity remains far below the level required to accommodate Australia’s growing population.