{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics Data & forecasts Tailored research and analysis Advocacy & policy Advocacy Policy priorities Position statements Submissions News and inspiration Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder & manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies & tool insurance Member perks Toyota vehicles The Good Guys Commercial Fuel savings See all Planning & safety solutions Building & planning services Safe Work Method Statements (SWMS) Solutions for your business Contracts Online Advertise jobs Trusted support & guidance Contracts & compliance support 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 & products Concrete, bricks & 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 Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand A job in the industry Get your builder's licence Continuing Professional Development (CPD) Find jobs
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Mates rates Get involved Become an award judge Join a committee Partner with us Our initiatives HIA Building Women GreenSmart Kitchen, bathroom and design hub Get to know us Our members Our people Our partners Support for you Charitable Foundation Mental health program
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program People & Business Awards GreenSmart Australian Housing Awards Awards winners Regional Award winners Australian Housing Award winners 2024 Australian Home of the Year Enter online Industry events Events in the next month Economic outlook National Conference Events calendar
HIA shop
HIA shop $vuetify.icons.faArrowRight
Most popular products National Construction Code Vol 1 & 2 Waterproofing wet areas AS 3740:2021 HIA Guide to Waterproofing HIA Guide to NCC Livable Housing Provisions Top categories Building codes & standards Contracts & documents Guides & manuals Safety products Signage For your business Contracts Online Digital Australian Standards Digital Resource Library Forecasts & data
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

Victorian home building continues to rise with record numbers of homes under construction

Media release

Victorian home building continues to rise with record numbers of homes under construction

Media release
Latest ABS quarterly housing construction figures for Victoria underscore the challenges faced by Victorian home builders in managing record home construction, rising materials costs and labour shortages.

Commencements of detached homes rose by 5.3 per cent in the first quarter of 2022 in Victoria, from 10,005 to 10,539, with a record of almost 30,000 homes under construction. Total commencements for the last 12 months reached 46,651, also nearly a record high level.

“While there’s been a slowing in the quarterly growth figures, the volume of new homes under construction in Victoria is still 54 per cent higher than pre-pandemic,” stated HIA Victorian Executive Director, Fiona Nield.

“It is also likely that home building activity in the first quarter of 2022 was held back by staff shortages associated with the Omicron outbreak and the higher than usual uptake of holiday leave.

“Victoria also managed to complete 10,162 detached homes in the quarter, nearing record highs and just 1.1 per cent down on the previous quarter. This represents the gradual but continued progress being made in the HomeBuilder pipeline and this should help gradually reduce the pressure on supply of materials and labour.

“The volume of detached home work under construction is more than 50 per cent above pre-pandemic levels.

“This has been driven by the combination of the HomeBuilder grant, reduced personal expenditure during COVID and record low interest rates.

All the extra time Victorians were spending at home either working or locked down, resulted in a pandemic trend towards creating greater space and amenity. This has kept demand for new housing and renovations elevated post HomeBuilder. Other indicators, such as building approvals, finance approvals and new home sales, continue to show a strong volume of work entering the pipeline.

“In addition, the multi-units’ market is continuing to strengthen. Multi-unit commencements increased by 6.7 per cent in the March 2022 quarter to be 24.0 per cent up in the last 12 months compared to the previous year. This improvement has been seen in both high-rise and medium density units.

“With interest rates and the cost of building increasing rapidly, affordability constraints will increasingly push home buyers back towards more affordable, higher density living. The return of the overseas migrants, students and tourists that Victoria depend upon more than any other state or territory, will help further strengthen the multi-units market.

“The combination of all these demand and supply factors will keep Victorian builders busy in 2023” concluded Ms Nield.

Snapshot of building activity pipeline - houses

Source HIA Economics, ABS 8752.0, ABS8731.0

For more information please contact:

Fiona Nield

Chief Executive - Business Services

Joe Shanahan

Manager, Communications & Media
Latest articles
View all news $vuetify.icons.faArrowRight
05 Jun
Engineered Stone Ban - Victorian Requirements

On 10 May 2024, Commonwealth, States and Territory work health and safety ministers met to endorse the regulatory amendments to give effect to the prohibition on the use of engineered stone from 1 July 2024.

03 Jun
Increase to minimum wages from 1 July

This morning the Fair Work Commission handed down its annual minimum wage decision, awarding a 3.75 per cent increase to the national minimum wage and modern award minimum wages.

31 May
Illegal Logging Prohibition Amendment Bill 2024

HIA prepared a submission to the Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Bill 2024.

31 May
Building Bill 2024 - Consumer Protection (NSW)

HIA responded to the Consultation Paper on the Building Bill 2024 – Consumer protections for home building work (Paper) issued by the Building Commission in April 2024.

HIA National & State Outlook Report

A comprehensive, up-to-date, and easy to follow quarterly forecast of home building and renovation activity.

HIA-Colorbond® steel Housing 100

Review the latest activities, market share and statistics of Australia’s largest homebuilders and residential developers.

New home sales report

Understand the current new home sales and construction activity each month.

HIA–CoreLogic Residential Land Report

Understand land prices, land sale volumes, and residential lot sizes on a capital city and non-metropolitan basis – right down to a statistical distri...

HIA Population and Residential Building Hotspots Report

Understand where the nation’s population growth and building hotspots are, so you can confidently plan for your future projects.

HIA Stamp Duty Watch

Understand the latest developments in stamp duty on home purchases.

Trades Report

Understand the availability of skilled trades and the costs associated on both a national and state level.

HIA Affordability Report

Understand the financial indicators impacting the affordability of homes in Australia.