Home Construction Levels Decline

New home construction is tipped to hit the lowest levels in almost a decade this year, according to the latest HIA report, adding to the shortage of homes across Australia.
HIA chief economist Tim Reardon says the number of detached houses commencing construction will drop further this year. He says housing starts will fall below 100,000 a year for the first time in a decade.
The HIA’s latest Outlook Report says interest rate rises have helped to bring the building boom to an end and further rate increases this year will accelerate the construction downturn.
"There was a large volume of work in the pipeline when rates started to rise in May 2022, and there remains a record number of homes under construction, but this will shrink quickly as market confidence continues to fade," Reardon says.
"By the end of 2022, lending for the purchase or construction of a new home had already fallen to its lowest level since 2012 and the full impact of last year’s rate increases is still to flow through to households."