bhiggins@dailyadvertiser.com.a u

IF WAGGA needs 400 new houses a year, one local builder believes the industry will provide but needs the land to build upon.

According to a new report, Wagga will see a population boom of 25 per cent in the next 20 years and an estimated 374 new houses will be needed every year to meet demand.

Colin Colley believes the industry can supply houses and Fitzpatricks Real Estate director Andrew McLeod agrees, saying the market is currently very strong.

However, both agree that available, affordable land is the key.

Mr Colley said the city could be twice the size if need be and more subdivisions were currently being opened up.

"During the building boom a few years back, we were building 400 houses a year, so the capability is definitely there," he said.

"Housing is very strong for first home buyers. Wagga is currently seventh in NSW for houses bought with the grant and there is plenty of competition in Wagga to keep the market active.

"We are now seeing subdivisions in Estella, Glenfield Park and Hilltop starting to open up, so I would think when spring and summer arrive we'll see more action."

The report estimates more than 150,000 homes need to be built each year to accommodate Australia's growing population, to provide especially for the tight rental market.

Wagga currently has a 2 per cent rental vacancy rate, mainly due to the high number of university students and military personnel that move in and out on an annual basis.

Mr McLeod sees Wagga as an ideal location for a population boom.

"The housing market is very strong in the under-$350,000 range and rental vacancy is also very low, there will be great demand for affordable land," he said.

"I think the findings reconfirm what a positive place Wagga is with the military bases, education and the Bomen Industrial Area, there is a lot of opportunity."