{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationRising rates do not solve material shortages
Rising rates do not solve material shortages
Login now
Enter your email and password to sign in
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Please check your mailbox for your new password
Sign up now
Enter details below and sign up
Unfortunately, the 0.25 increase in the cash rate will do little to arrest the rising cost of building materials.
Demand for housing has been exceptionally strong over the past two years. Driven by record low interest rates but also due to fiscal support, strong employment conditions, rising house prices, changes to household formation and a decentralisation of population. These factors have offset the adverse impact of the loss of migration.
Demand for homes increased during the pandemic across most developed economies as households sought additional space. This has resulted in a similar boom in demand across most developed economies.
The subsequent surge in demand for building materials, combined with constraints in global supply chains, have caused a significant shortage of building materials across the world. This has seen the cost of key building materials escalate and was a major contributor to recent inflation data.
These supply constraints are a major cause of the inflationary pressure. The increase in the cash rate will slow demand for homes, but it does not ease the constraints on global supply chains, increase the supply of skilled labour or improve productivity.
Today’s increase in interest rates alone should not have a significant impact on most household budgets. It does however, send an important signal for homeowners and investors considering home purchase that the period of ultra-low interest rates, is nearing an end.
Combined with the lagged impact of migration, the volume of homes commencing construction is expected to slow to more average levels by early 2024.
Finally, concerns that this rate rise could lead to instability within the financial sector in Australia or cause extraordinary declines in home prices are unwarranted. Australia has an unquestionably strong financial system.”
For more information:
Joe Shanahan
Manager, Media and Government Relations
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.
Strong pipeline sees jump in new home sales for WA
Western Australia is one of just two states to see an increase in new home sales in April, recording a significant increase in the amount of new activity from the same period prior to the COVID-19 pandemic.
HIA welcomes focus on skilled workforce in WA budget
The Housing Industry Association (HIA) has welcomed the ongoing support for Western Australia’s residential building industry in the 2022-2023 State Budget, including a number of targeted initiatives aimed at attracting more skilled workers into the state amid record high levels of detached construction.
Draft Variation 369 start date announced
The ACT Government has announced an implementation schedule and transition rules for Variation 369 to the Territory Plan.