{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics Insights 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 HIA Insurance Services 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 How do I apply? Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand Professional development courses A job in the industry Get your builder's licence Continuing Professional Development (CPD) Further your career 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

RBA's rate hikes start to weigh on building approvals

Media release

RBA's rate hikes start to weigh on building approvals

Media release
A fall in building approvals at the end of 2022 is the next step in what has been a very well broadcast downturn in the housing market caused by the increase in the cash rate.

The Australian Bureau of Statistics today released its monthly building approvals data for November for detached houses and multi-units covering all states and territories.

“Building approvals fell by 9.0 per cent in the month of November, including a 2.4 per cent decline in detached approvals and a 19.9 per cent decline in multi-units,” added Mr Devitt.

“This puts detached approvals over the three months to November down by 12.1 per cent on the same quarter in 2021, and multi-units down by 11.4 per cent.

“Within two months of the RBA’s first interest rate hike in May 2022, leading indicators of building activity including new home sales started to decline. Investors, first home buyers and owner- occupiers started retreating from the housing market.

“Today’s data suggests that builders have worked through much of the large pipeline of work that existed in May 2022, when the RBA started increasing the cash rate. This will result in a slowdown in the number of homes under construction in 2023.

“The full impact of the 2022 increases in the cash rate will not be observed until the second half of 2023.

“The depth of this downturn will be determined by the RBA’s cash rate decisions.

“The RBA has already undertaken the steepest hiking cycle in a generation and it needs to hold fire on further hikes to give their actions to date time to play out.

“As more housing market indicators reflect the impact of cash rate increases to date, the RBA will be under increasing pressure to reverse course in the second half of this year,” concluded Mr Devitt.

In seasonally adjusted terms, total building approvals by state were mostly down in the three months to November compared to the same quarter in 2021, with the declines led by Western Australia (-27.4 per cent), followed by Queensland (-16.8 per cent), New South Wales (-12.0 per cent), and Victoria (- 6.6 per cent), with South Australia seeing the only increase (+6.2 per cent). In original terms, total building approvals increased in the Northern Territory (+29.0 per cent) and Tasmania (+7.8 per cent), while declining in the Australian Capital Territory (-34.8 per cent).

For more information please contact:

Thomas Devitt

HIA Senior Economist
Latest articles
View all news $vuetify.icons.faArrowRight
26 Jul
A plan for land is a plan for housing

“Adelaide, Brisbane and Perth are seeing residential land values grow at a rapid rate, while Sydney and Melbourne’s values remain relatively stable,” stated HIA Senior Economist Matt King.

26 Jul
New plumbing and drainage inspection procedures in Huntlee and-North Rothbury area

Plumbing and drainage inspections in the Huntlee and North Rothbury areas are moving from Cessnock City Council to Building Commission NSW.

25 Jul
BASIX transition period ending soon

The BASIX Transition period for eligible signed building contracts will end on 30 September 2024. BASIX Certificates must be generated by this date to apply the pre-1 October 2023 BASIX standards.

23 Jul
Lingering worker shortages see trade rates continue to rise

“As the number of new homes under construction continues to decline builders are reporting fewer difficulties scheduling skilled trades workers on their jobs, although availability of skilled workers remains worse than prior to the pandemic,” stated Geordan Murray, HIA Executive Director – Future Workforce.