{{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
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
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.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
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 please contact:
Working toward building 1.2 million homes
“HIA forecasts show that recent policy announcements will see more than 1 million new homes commencing construction over the next five years,” said HIA Chief Economist, Tim Reardon.
Update on Tasmanian State Election
Tasmanian Liberals re-elected in 2025 with new housing and construction policies. Tasmanians could benefit from $30,000 First Home Owner Grants, extended Payroll Tax Rebates for apprenticeships and reforms to speed up housing land supply and improve building regulations in Tasmania.
NCC pause, reforming long overdue EPBC Act and 5% house deposits
Over the past few days there has been a number of important housing announcements from the Federal government that HIA has been advocating for over several years.
Unlocking the ‘missing middle’ to address the 83,000 tradies shortfall
“An average person leaving school today will have up to 15 different jobs in their lifetime. High school students, as they finish their senior school education, have an unlimited number of career options at their feet,” said HIA Managing Director, Jocelyn Martin, as part of the launch at National Skills Week.