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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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Slow start on signature housing target
“Australia commenced construction on just 43,250 new homes in the first quarter of the 2024/25 financial year,” stated HIA Senior Economist Tom Devitt.
“Let’s Build Australia” and get serious about skill shortages
“The focus on Fee Free TAFE is distracting from the real issue facing the supply of housing in Australia. Successive governments have been aware of the persistent and structural skill shortages across key construction trades for decades and the current policy approaches are doing very little to shift the dial,” said HIA Managing Director Jocelyn Martin.
Keeping the dream alive - Greenfield development must be part of a diverse housing mix (NSW)
Reports featured in the media today are a good reminder that home ownership still matters to Australians, and we need to build more housing, of all types to keep the dream of home ownership alive,” said Brad Armitage, HIA Executive Director NSW.
New Year updates for WA
On behalf of all of us at HIA we would like to wish you a very happy 2025! As everyone heads back to work for the new year, we are sharing some exclusive member updates to get you ready for what lies ahead and perhaps what you might have missed while you were away.