Construction of new homes is tipped to fall to the lowest levels in more than a decade. The latest HIA economic and industry outlook report says the number of new homes commencing construction peaked in June 2021.
HIA Chief Economist, Tim Reardon says it will continue to decline under the weight of rising interest rates and land costs. He says more land needs to be approved for the construction of houses and apartment projects and governments need to lower the tax and regulatory imposts on home building. Additional regulatory requirements imposed this year will add around $25,000 to the cost of a new home. “This is the right time in the cycle for governments to invest in public housing stock because they will get a better return on their investment, and they will support capacity within the industry during a trough of activity. The importance of maintaining capacity within domestic manufacturing and among the trades base was never more evident than during the pandemic.”