{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Economic research and forecasting Economics Housing outlook Tailored market research Economic reports and data Inspiring Australia's building professionals HOUSING The only place to get your industry news Media releases Member alerts Submissions See all
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder and manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies and tool insurance Planning and safety services Building and planning services How can HIA Safety help you? Independent site inspections Solutions for your business Contracts Online HIA Tradepass HIA SafeScan HR Docs Trusted legal support Legal advice and guidance Professional services Industrial relations
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials and products Concrete, bricks and walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Falls from heights Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects COVID-19 Getting approval to build Sustainable homes
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Hear what our apprentices say Advice for parents and guardians Study with us Find a course Get your builder's licence Learn with HIA
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Get involved Become an award judge Join a committee Partner with us Get to know us Our members Our people Our partners Mates rates What we do Mental health program Charitable Foundation GreenSmart
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Australian Housing Awards Awards program National Conference Industry networking Events
HIA products
HIA products $vuetify.icons.faArrowRight
Shop @ HIA Digital Australian Standards Contracts Online Shipping and delivery Purchasing terms & conditions Products Building codes and standards Hard copy contracts Guides and manuals Safety and signage See all
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Record year for new homes starts

Media release

Record year for new homes starts

Media release
More detached homes commenced construction in the 12 months to September 2021 than in any previous period,

The ABS today released its building activity data for the September 2021 quarter. This data 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.

“Lockdowns in Sydney and Melbourne resulted in a sharp contraction in new detached home starts in the September quarter, with a 16.5 per cent contraction compared to the record high of the previous quarter. 

“The decline in new home commencements in the September quarter was not a reflection of a slowing market, with other indicators, such as building approvals, showing a continued strong pipeline,” added Mr Devitt.

“There were almost 36,000 new house commencements in the September quarter. Despite the decline, this is still stronger than any quarter before the mid-2020 introduction of the HomeBuilder grant.

“This puts detached house commencements over the last 12 months at 149,345, a new record high and 12.8 per cent above the pre-HomeBuilder record of 132,377 in 1988/89.

“There were also over 20,500 new multi-unit commencements in the September quarter. This was down by 15.8 per cent on the previous quarter.

“Despite this September quarter contraction, multi-unit commencements were also still up by 11.7 per cent for the year.

“The current boom is expected to continue supporting strong levels of employment into 2023, aided further by record low interest rates and the pandemic pushing households towards lower density living.

“Strong employment conditions, rising house prices and consumer confidence are also continuing to support housing demand.

“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. Under normal circumstances, the surge of HomeBuilder projects would have translated into an increase in completions from the June 2021 quarter. However, completions have been slower to respond. As a result, the volume of approved-but-not-yet-commenced work is at its highest level in over a decade,” concluded Mr Devitt.

All states and territories saw declines in the September 2021 quarter in new house commencements, led by the Northern Territory (-65.5 per cent), Western Australia (-28.0 per cent), Queensland (-24.6 per cent), Tasmania (-24.2 per cent), the Australian Capital Territory (-11.9 per cent), and New South Wales (-11.3 per cent), Victoria (-11.0 per cent) and South Australia (-8.6 per cent).

A few states saw increases in multi-unit commencements in the quarter, led by Tasmania (+240.4 per cent), Western Australia (+37.2 per cent) and Victoria (+17.0 per cent). The other jurisdictions saw declines, led by the Northern Territory (-46.7 per cent), the Australian Capital Territory (-42.4 per cent), Queensland (-35.2 per cent), South Australia (-33.4 per cent) and New South Wales (-32.6 per cent).

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

For more information:

Thomas Devitt

Economist

Tim Reardon

Chief Economist
Latest articles
View all news $vuetify.icons.faArrowRight
19 May
Engaging contractors in NSW - Details to collect from your contractor

This checklist provides a summary of some of the information and details you should seek from a contractor when engaging their services. Some of these may be legally required, whereas others are a commercial decision for your business.

18 May
Vale Mario Biasin

HIA is deeply saddened by the loss of housing industry leader Mario Biasin

16 May
NSW Building contracts and related documents

Learn about all of the various contract documents you can use INS to be compliant.

15 May
Accessing super: home ownership matters

The Liberal Party’s announcement today that if re-elected they will allow Australians to access up to $50,000 from their superannuation to fund a deposit to help them buy their first home is a welcome one, and an initiative that HIA has championed.