Home building approvals increase from decade-low levels
- Written by HIA
“Building approvals for new homes increased by 5.5 per cent in the month of May 2024,” stated HIA Chief Economist Tim Reardon.
The Australian Bureau of Statistics today released its monthly building approvals data for May 2024 for detached houses and multi-units covering all states and territories.
“This leaves approvals in the three months to May 2024 down by 1.5 per cent compared to the same period in the previous year,” added Mr Reardon.
“There were 14,180 residential building approvals in the month of May, with 9,260 detached house approvals and 4,920 multi-units.
“Detached house approvals increased by 1.3 per cent in May 2024 and have been slowly strengthening in recent months.
“Detached approvals in the three months to May 2024 are up by 10.0 per cent compared to the same period in the previous year.
“Multi-unit approvals increased by 14.3 per cent in May from very low levels in recent months. Over the three months to May 2024, multi-unit approvals remain 19.1 per cent lower than in the same period in the previous year.
“There have been 163,760 total dwelling approvals over the most recent 12 months to May 2024.
“This is well below the 240,000 new homes needed each year from 1 July 2024 to achieve National Cabinet’s goal.
“The low approvals numbers indicate a slow start to building 1.2 million homes over the next five years.
“Increasing the number of homes built will be necessary to address longstanding housing shortages.
“Addressing tax, planning, land and regulatory constraints will be necessary to increasing the supply of homes in Australia,” concluded Mr Reardon.
In seasonally adjusted terms, approvals in the three months to May 2024 saw an increase of 51.1 per cent in Western Australia compared to the same time in the previous year. This was followed by Victoria (+10.0 per cent). The other jurisdictions recorded declines over the same period, led by the New South Wales (-21.6 per cent), followed by South Australia (-6.0 per cent) and Queensland (-4.8 per cent).
In original terms, the Australian Capital Territory recorded a 33.4 per cent increase in approvals in the three months to May 2024 compared to the previous year. Approvals over the same period fell in the Northern Territory (-34.3 per cent) and in Tasmania (-16.3 per cent).
