Lack of housing will challenge recovery - Reserve Bank

• Housing supply not sufficient - RBA
• Prices could rise if balance not adjusted
• "Hard work" staved off recession

AUSTRALIA is facing an under-supply of housing that isn't meeting the demands of a growing population, an RBA official says.

Australia is likely to devote a higher share of its GDP to housing than before, or risk a "further adjustment" in housing prices and rents to balance supply and demand.

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