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{{propApi.successMessage}} {{region}} Change locationPandemic drives ‘super cycle’ of housing demand
Pandemic drives ‘super cycle’ of housing demand
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The HIA New Home Sales report – a monthly survey of the largest volume home builders in the five largest states – is a leading indicator of future detached home construction.
“The increase in sales in December marks the fifth consecutive monthly increase in new home sales, a full nine months since the end of HomeBuilder,” added Mr Devitt.
“This is the highest level of new home sales since 2011, excluding the three largest spikes associated with HomeBuilder.
“Sales in the final quarter of 2021 were also 25.5 per cent higher than the previous quarter.
“Underlying demand for housing remains exceptionally strong as the pandemic continues to push households toward lower density living. It appears that the more time people spend under lockdown and working from home, the higher is the demand for detached housing and renovations activity.
“These factors are driving a ‘super cycle’ of housing demand across Australia.
“The constraint on home building is not demand but the availability of land, labour and materials. The shortage of labour and materials has led to construction timeframes increasing significantly.
“As a result, the volume of approved-but-not-yet-commenced work is at its highest level in over a decade,” concluded Mr Devitt.
On a quarterly basis, sales in Queensland increased in the three months to December 2021 to be 49.0 per cent higher than the previous quarter. This was followed by Victoria (+36.8 per cent), New South Wales (+30.2 per cent), and South Australia (+11.2 per cent). Western Australia saw the only quarterly decline, down by 8.8 per cent.
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