Positive signs in new home construction but still a long way to go
- Written by: Master Builders Australia
In the first three months of the National Housing Accord, Australia commenced construction on 43,247 new homes according to the Australian Bureau of Statistics.
This is 4.6 per cent higher than the June 2024 quarter and 13.9 per cent higher than the same quarter in 2023.
The strongest growth was in new detached house starts, rocketing 20.5 per cent since June 2024 and up 5.3 per cent over the year to September 2024.
Master Builders Australia CEO Denita Wawn said while the strong rebound in new detached house construction has been welcomed by the industry, there is still a long way to go to reach the level of output required to meet the Housing Accord target of 1.2 million homes.
Over the year to September 2024, the number of new homes commencing construction reached 165,048, well below the 200,000 required.
If building activity continues at this pace, Australia will commence construction on just over 825,000 new homes over the next five years.
This is around 350,000 new homes short of the Housing Accord target.
“Our performance in apartment construction will be the key to whether we meet the target. Apartment construction levels remain too low because the investment appetite is not there.
"Low productivity, labour shortages, costly and restrictive CFMEU pattern agreements, a lack of supporting infrastructure and a high inflationary environment all contribute to project costs not stacking up.
"If we are going to solve the housing crisis, we need to build more apartments and make them more attractive for people to invest in - only then will we see a lowering of rental inflation and more homes for Aussies,” Ms Wawn concluded.
