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“Lending for new homes is down by 62.4 per cent since its peak in January 2021, to its lowest level since November 2012,” added Mr Reardon.
“Sales of new homes have stalled in recent months as market confidence declines.
“This poor data is as a consequence of the fastest increase in the cash rate in a generation. Despite this, the impact of last year’s rate increases won’t be fully apparent until late this year.
“The decision by the RBA to increase rates further in 2023, will further erode market confidence and accelerate the downturn that is already evident.
“There are significant lags between a change in the cash rate and its impact on the economy. In this cycle, it will take up to 18 months before the impact of the May 2022 rate increase fully flows through to employment in the sector.
“The supply chain disruptions of the pandemic are easing. Inflation in other economies is slowing and interest rates are not the only tool at governments’ disposal to address the inflationary problem,” concluded Mr Reardon.
This year’s predictable ‘election focused’ State Budget has missed the opportunity to improve the environment for home building. It contains few positive measures to increase housing supply, address housing affordability and lower the costs facing new home builders.
“The Housing Industry Association (HIA) says the Northern Territory’s 2026–27 Budget maintains key housing incentives but falls short of the investment needed to significantly lift housing supply and address skills shortages in the construction sector,” said Luis Espinoza, HIA Executive Director, Northern Territory.
The Queensland Government has confirmed while the National Construction Code (NCC) 2025 has been formally adopted, its commencement in Queensland has been deferred until 1 May 2027.
“The 2026/27 Budget handed down by the Victorian government today once again does not deliver meaningful tax reforms that will increase housing supply, address housing affordability and lower the costs facing home builders,” says HIA Victoria Executive Director, Keith Ryan.