{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Economic research & forecasting Economics Housing outlook Economic reports & data Tailored market research 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 Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies & tool insurance Planning & safety solutions Building & planning services How can safety solutions help you? Independent site inspections Solutions for your business Contracts Online HIA Tradepass HIA SafeScan Advertise jobs Trusted support & guidance Contracts & compliance support Professional services Industrial relations Member savings Toyota vehicles Fuel savings Handy pay See all
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 Falls from heights Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects COVID-19 Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand A job in the industry Get your builder's licence Continuing Professional Development (CPD) 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 2023 Australian Home of the Year Enter online Industry events Events in the next month Economic outlook National Conference Events calendar
HIA products
HIA products $vuetify.icons.faArrowRight
Shop @ HIA Digital Australian Standards Contracts Online Shipping & delivery Purchasing T&Cs See all Products Purchase NCC 2022 Building codes & standards Economic reports Hard copy contracts Guides & manuals
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

Looming building slump becomes clearer

Media release

Looming building slump becomes clearer

Media release
“Building approvals in the first month of the new year fell to their lowest level in over a decade, as 2022’s interest rate increases continue to weigh on the housing market,” stated HIA Senior Economist Tom Devitt.

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

“Both detached house and multi-unit approvals in January declined by 13.5 per cent and 43.7 per cent respectively. While multi-unit approvals can be volatile from month-to-month, the continuing declines in the detached sector are reflective of the RBA’s rate increases from last year,” added Mr Devitt.

“The last time detached house approvals were at these low levels was also the last time the RBA overshot with increases in the cash rate, which was in June 2012.

“This will not be the end of the decline in approvals. The adverse impact of last year’s cash rate increases is still to fully flow through to the official data.

“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 on the ground that will be completed in 2023 and this will keep unemployment in the national economy exceptionally low until early 2024.

“If the RBA continues to raise rates, they do risk a longer and deeper slowdown in economic growth than is necessary in this cycle,” concluded Mr Devitt.

In seasonally adjusted terms, total building approvals were down in almost all jurisdictions in the first month of 2023, with the declines led by New South Wales (-49.0 per cent), Victoria (-38.6 per cent), Tasmania (-31.7 per cent), Western Australia (-7.9 per cent) and South Australia (-6.5 per cent). Queensland saw the only increase for the month in seasonally adjusted terms, up by 25.6 per cent. In original terms, total building approvals fell in the Australian Capital Territory (-57.5 per cent) and the Northern Territory (-51.1 per cent).

For more information please contact:

Tim Reardon

HIA Chief Economist

Thomas Devitt

HIA Senior Economist
Latest articles
View all news $vuetify.icons.faArrowRight
04 Mar
New Vehicle Efficiency Standards

HIA provided a submission to Dept. of Infrastructure, Transport, Regional Development, Communications & the Arts on New Vehicle Efficiency Standards.

04 Mar
Building approvals fall a further 1 per cent in January

“Approvals have been declining since the first increase in the cash rate in mid-2022 and this trend appears to be continuing into the start of 2024. Building approvals nationally fell by a further 1.0 per cent in the month of January 2024,” stated HIA Chief Economist, Tim Reardon.

04 Mar
Greg Elsworthy Education Centre

HIA is pleased to announce an important part of the HIA office in Newcastle has been named after Greg Elsworthy.

29 Feb
Craig Smythe awarded Life Membership

Last week Craig Smythe from of Adbuild Constructions received HIA Life Membership in recognition of his service to the residential construction industry over the last 35 plus years. He becomes only the third Hunter member to receive this prestigious award.