The number of new house approvals is at its lowest level in a decade according to Australian Bureau of Statistics figures.
HIA Senior Economist, Tom Devitt, says the number of new houses approved in September fell by 4% per cent.
“Building approvals continue to be weighed down by the fastest increase in interest rates in a generation,” he says.
He believes further declines are to be expected as the full impact of another rate rise is felt by households.
“This slowdown in the volume of approvals will make it increasingly difficult to reach the Australian government’s target of building 1.2 million new homes in five years,” he says.
Master Builders Australia says a blowout in construction delays means the time it takes to build a new home is now nearly 12 months.
Chief executive, Denita Wawn, says the state with the most significant delays is Western Australia, where it takes on average 16.5 months to build.