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$vuetify.icons.faPhone1300 650 620

HomeBuilder sets records in 2020/21

Media release

HomeBuilder sets records in 2020/21

Media release
“Today’s data from the Australian Bureau of Statistics confirms the size of the HomeBuilder boom, with more detached house commencements than in any previous quarter or year on record,” stated HIA Economist Tom Devitt.

The ABS today released its building activity data for the June 2021 quarter. This release provides estimates of the value of building work and number of dwellings commenced, completed, under construction and in the pipeline across Australia and its states and territories.

“The 2020/21 financial year saw 139,195 detached house commencements, 5.2 per cent higher than the previous record of 132,377 set in 1988/89,” added Mr Devitt.

“In the three months to June 2021 more than 41,200 new houses commenced construction. This is 19.3 per cent higher than the pre-HomeBuilder record set in March 2000. 

“We anticipate that this peak in new house starts will remain a record for many years and perhaps decades. 

“The multi-units market also saw a significant jump in the June 2021 quarter, up by 46.0 per cent. This has been supported by strength in approvals for medium density housing, and apartment investors looking through the haze of the pandemic with greater optimism.

“However, multi-unit commencements in 2020/21 were still 37.3 per cent lower than the peak in 2015/16.

“This sector’s medium-term prospects are very much dependent on the return of overseas migrants, students and tourists,” concluded Mr Devitt.

The Northern Territory saw the largest increase in detached house commencements in the June 2021 quarter, up by 73.2 per cent. This was followed by Victoria (+31.4 per cent), Tasmania (+24.0 per cent), New South Wales (+16.2 per cent) and Queensland (+2.4 per cent). The other states saw quarterly declines, including the Australian Capital Territory (-13.3 per cent), South Australia (-4.6 per cent) and Western Australia (-1.0 per cent).

Queensland saw the largest increase in multi-unit commencements in the June 2021 quarter, up by 119.3 per cent. This was followed by South Australia (+92.1 per cent), New South Wales (+50.5 per cent), the Northern Territory (+33.3 per cent) and Victoria (+33.0 per cent). The other states saw quarterly declines, including Tasmania (-42.3 per cent), the Australian Capital Territory (-14.9 per cent) and Western Australia (-8.4 per cent).

House vs. 'other' new dwelling commencements - Australia  Source: ABS 8752 Qtr

For more information:

Thomas Devitt

Economist

Tim Reardon

Chief Economist
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