{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics Insights Data & forecasts Tailored research & analysis Advocacy & policy Advocacy Policy priorities Position statements Submissions News & inspiration Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
For your business Contracts Online Safety systems & solutions Advertise jobs HIA SafeScan Member perks Toyota vehicles The Good Guys Commercial Ampol fuel savings See all Industry insurance HIA Insurance Services Construction works insurance Home warranty insurance Tradies & tool insurance Apprentices Why host a HIA apprentice? Hire an apprentice Support & guidance Contracts & compliance support Building & planning services
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 Our podcasts Made To Build Built Different HIA Building Australia Building the Hunter Our initiatives HIA Building Women GreenSmart Kitchen, bathroom & design hub Get involved Become an award judge Join a committee Partner with us Support for you Charitable Foundation Mental health program Get to know us Our members Our people
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 2025 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

Housing downturn accelerates

Media release

Housing downturn accelerates

Media release
“ABS data released today is reaching new lows, with lending for new homes recording its weakest month in almost 15 years,” stated HIA Senior Economist, Tom Devitt.

The ABS released the Lending to Households and Businesses data for January 2023 today.

“There were just 4,345 loans issued for the construction or purchase of a new home in January, the weakest month since November 2008, and 8.2 per cent down on the previous month,” added Mr Devitt.

“Owner occupiers and investors, alike, continue to retreat from the market. First home buyers, especially, were issued fewer loans in January 2023 than in any month in the last six years.

“Even lending for renovations – the part of the sector expected to hold up relatively well during this downturn – had its weakest month in almost two years.

“The data continues to reflect the weight of interest rate increases which occurred in 2022, and before the RBA increased the rate again in February, with the promise of more rate increases to come.

“There are significant lags evident in this cycle and we are unlikely to see the bottom in this data until the second half of the year, at the earliest.

“The higher cash rate is compounding the adverse impact of the rising cost of materials, labour and land as well as the increased costs of compliance with the building code.

“There remains a large volume of work underway that will be completed in 2023 and this will keep national unemployment exceptionally low until early 2024.

“By continuing to raise rates the RBA risks a longer and deeper slowdown in economic growth than is necessary,” concluded Mr Devitt.

The number of loans for the construction or purchase of new homes declined in most jurisdictions in January 2023 compared to the previous month, led by South Australia (-37.6 per cent), and followed by New South Wales (-37.2 per cent), Victoria (-32.4 per cent), Queensland (-25.1 per cent), Western Australia (-23.6 per cent) and Tasmania (-1.4 per cent). Increases were seen in the Northern Territory (+47.6 per cent) and the Australian Capital Territory (+24.0 per cent).

Lending for Purchase and Construction of a New Home

Source: ABS

For more information please contact:

Tim Reardon

HIA Chief Economist

Thomas Devitt

Senior Economist
Latest articles
View all news $vuetify.icons.faArrowRight
21 Aug
Housing progress at roundtable important but more work to do

“The Housing Industry Association (HIA) is pleased to see housing feature prominently at this week’s Economic Reform Roundtable particularly on cutting excessive red tape and streamlining environmental approvals, but as Treasurer Jim Chalmers has indicated more work is needed on easing housing construction,” said HIA Managing Director, Jocelyn Martin.

21 Aug
HIA welcomes $50 Million Housing Support Package for Flood-Hit Residents

“As an industry association whose members are embedded in the Hunter and Mid North Coast communities, HIA welcomes the $50 million Housing Support Package announced by the Albanese and Minns Governments,” said HIA Hunter Executive Director Craig Jennion.

19 Aug
HIA welcomes $300 million plantation grant to boost timber supply

“The Housing Industry Association (HIA) welcomes today’s announcement by the Albanese Government in providing $300 million to support Australia’s future wood supply to meet increasing housing needs across the country,” said HIA Managing Director Jocelyn Martin.

19 Aug
HomeGrown grant key to rebuilding the Territory

“Today’s announcement on the successful take up of the HomeGrown Territory grant highlights the importance of this key housing support scheme that is spurring economic growth and kickstarting home building across the Territory,” stated HIA Executive Director - Northern Territory, Luis Espinoza.