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{{propApi.successMessage}} {{region}} Change locationLabour shortages continue to slow homebuilding
Labour shortages continue to slow homebuilding
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The ABS today released its building activity data for the September Quarter 2022. This data provides estimates of the value of building work and number of dwellings commenced, completed and under construction, across Australia and its states and territories.
“There were only 29,153 detached houses completed in the September Quarter 2022, just 2.5 per cent up on the same time the previous year. The number of homes reaching completion remains no higher than those being commenced with 29,177 new projects started in in the September quarter,” added Mr Devitt.
“Supply constraints were holding back completion of these projects. Materials constraints have plagued builders over the last two years, but the shortage of skilled trades is the number one constraint on Australian builders.
“Over 104,000 houses are still under construction across Australia, almost double the pipeline that existed in mid-2020.
“New house commencements continued to decline in the September quarter with a further 4.9 per cent fall. Commencements peaked in the previous cycle in mid-2021 and are expected to continue to decline into 2024.
“The volume of houses under construction is expected to keep Australia’s home builders busy this year, despite the slowdown in the number of homes expected to commence construction.
“In addition to this, the volume of multi-unit dwellings under construction continues to grow as commencements exceeded completions over the 18 months to September 2022.
“The multi-units sector should continue to be supported by the return of overseas migrants, students and tourists and the incredibly tight rental markets across the country.
“With interest rates increasing rapidly, affordability constraints will push home buyers back towards more affordable, higher density living.
“This large volume of work under construction at the end of 2022 will ensure elevated demand for skilled trades across the economy,” concluded Mr Devitt.
Snapshot of building activity pipeline - Houses
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Victorian housing lags the smaller states
“Victoria is behind Queensland, Western Australia and South Australia in HIA’s latest Housing Scorecard, reflecting a dramatic change in fortunes over the last five years,” stated HIA Executive Director Victoria, Keith Ryan.
Cost-of Living Focused 2025/26 Victorian Budget Misses Opportunity to Boost Victorian Home Building
This year’s State Budget has largely missed the opportunity to improve the environment for home building and contains negligible measures to increase housing supply, address housing affordability and lower the costs facing new home builders.
Having trouble with the weather? We are here to help
The current severe storm conditions across NSW can wreak havoc on construction sites and can raise concerns from owners in recently completed homes.
South Australia tops Housing Scorecard
“The outlook for home building in South Australia has taken a marked step up in recent years, as economic and policy dynamics increasingly shift in the state’s favour,” stated HIA Senior Economist Tom Devitt.