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{{propApi.successMessage}} {{region}} Change locationVolume of homes under construction 80% above pre-COVID levels
Volume of homes under construction 80% above pre-COVID levels
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“The slowing in commencements is not due to slowing demand. 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,” added Mr Devitt.
“Detached completions also managed to climb by 10.8 per cent, from 28,098 in December 2021 quarter to 31,145 in March 2022. This is the strongest quarter of completions since September 2018 and represents the gradual but continued progress being made in the HomeBuilder pipeline.
“Despite the rise in completions and decline in commencement of new homes, the volume of detached work under construction is almost 80 per cent above its pre-pandemic levels.
“This was driven by the combination of the HomeBuilder grant and record low interest rates. Even after the end of the grant, all the extra time Australians were spending at home either working or locked down, resulted in a pandemic trend towards space and amenity. This kept demand for new housing and renovations elevated. 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 to this, the multi-units market is also continuing to strengthen. Multi-unit commencements increased by 1.8 per cent in the March 2022 quarter to be 29.7 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 and with the return of migration, demand for units should continue to strengthen.
“The combination of all these demand and supply factors – an enormous pipeline of detached and renovations work, rising interest rates, the return of overseas migrants, and ongoing supply constraints – will keep Australian builders busy in 2023,” concluded Mr Devitt.
Snapshot of building activity pipeline - houses
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Detached house approvals picking up
“There were 9,490 detached homes approved in the month of April 2025, up by 3.3 per cent compared to the previous month,” stated HIA Senior Economist Maurice Tapang.
State Budget is a missed opportunity to stimulate housing
The Treasurer has handed down the 2025/26 Tasmanian Budget. The Budget focuses on alleviating cost of living pressures, health, education and infrastructure, while mapping out a path to a fiscal balance surplus in 2032/2033.
HIA supports bipartisan approach to planning reform NSW
“The NSW planning system has failed to deliver the number of homes we desperately need and we fully support removing the politics from housing, to address this growing crisis,” said Brad Armitage, HIA Executive Director NSW.
Opposition pledge to remove stamp duty for first home buyers welcomed (Vic)
The Victorian Opposition’s announcement that it would remove stamp duty for first-home buyers spending up to $1 million on a new or existing home if elected at next year’s state election, is a positive step towards improving home affordability,” says Steven Wojtkiw, HIA Victoria Deputy Executive Director.