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The Australian Bureau of Statistics today released its monthly building approvals data for April for detached houses and multi-units covering all states and territories.
“Detached house approvals increased by 1.4 per cent in the three months to April 2022 to be 16.8 per cent higher than the same three months in 2019.
“Renovations activity also remains elevated. The value of renovations approvals jumped by 6.6 per cent in April to be up over the last 18 months by 42.6 per cent on pre-pandemic levels.
“At the end of 2021, there were 75.7 per cent more detached homes under construction than pre-COVID. There are now more homes approved and waiting commencement than in any previous cycle.
“Together with similar new home building and renovations booms in other developed economies, this has placed significant demands on the international supply of building materials, along with local supplies of land and labour. This has combined to create ongoing increases in the cost of construction.
“This will sustain Australia’s elevated number of homes and renovations under construction and keep Australia’s already-stretched home builders busy until at least June 2023.
“It will also delay the adverse impact of rising rates on the industry, and therefore the wider economy.
“Multi-unit approvals increased by 7.4 per cent in the three months to April 2022.
“An acute rental shortage and deterioration in affordability has seen strengthening demand for multi-units, including high rise apartments. There are early signs that overseas migrants – who tend to favour higher density living – are returning. These factors will support demand for multi-unit construction going forward.
“With detached home building and renovations activity remaining at capacity until at least June 2023 and demand for multi-units returning, the shortage of building materials and labour will continue to be the main pinch point for the industry,” concluded Mr Devitt.
In seasonally adjusted terms, total residential building approvals increased in the last three months compared to the previous quarter in Victoria (+9.9 per cent), New South Wales (+8.6 per cent) and South Australia (+4.3 per cent). Declines were seen in Queensland (-4.5 per cent), Western Australia (-9.8 per cent) and Tasmania (-17.1 per cent. In original terms, approvals increased in the Northern Territory (+115.2 per cent) but declined in the Australian Capital Territory (-5.2 per cent).
“The RBA decision to keep interest rates in restrictive territory today will not stop the improvement in leading indicators of future home building,” stated HIA Senior Economist Tom Devitt.
In mid-June 2025, the NSW Premier released the Housing and Productivity Contribution (HPC) Works-in-Kind Guideline for public consultation.
Today the State Government announced proposed changes to the regulatory powers to investigate registered builders who may be unable to meet the financial requirements of registration. The announcement also included a long-awaited review of the Home Building Contracts Act 1991 (HBCA) and associated laws.
Housing Industry Association welcomes today’s announcement by the Cook Labor Government to review key aspects of the home building contracts legislation and provide the building regulator with additional powers to work with builders in distress.