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{{propApi.successMessage}} {{region}} Change locationRate increase risks unnecessary slowdown
Rate increase risks unnecessary slowdown
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“Loans for the purchase and construction of a new home fell in January to the weakest month since November 2008. This is before the full impact of rate increases in 2022 hit the market, let alone the February 2023 increase.
“There are significant lags evident in this cycle and the full impact of higher cash rates will not be fully reflected in economic indicators 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 due to changes to the building code.
“There remains a large volume of work underway that will be completed in 2023 which is obscuring the adverse impact of rate rises on other indicators such as unemployment and economic growth.
“By continuing to raise rates the RBA will inflict further unnecessary pain on the $120 bn housing sector and related industries,” concluded Mr Reardon.
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Update on recent HIA advocacy activities
Over the past few weeks HIA has been advocating strongly on behalf of members on a range of policy and regulatory issues that have significant implications for housing supply, business confidence and the capacity of our industry to deliver the homes Australia needs.
Tasmanian builders shouldn't be shut out of housing work over union membership
The Housing Industry Association (HIA) has today written to the Tasmanian Government calling for a commitment that state-funded and state-partnered housing work will continue to be awarded on merit, not industrial arrangements, warning new federal procurement rules could shrink the pool of builders able to deliver the homes Tasmania needs.
Rushing Working from Home laws will only lead to more bungling
The Victorian Government continues to push ahead with its Working from Home laws despite the Housing Industry Association’s (HIA) call for it to abandon its proposed legislation, warning the changes would impose additional regulatory pressure on businesses already struggling and kill productivity.
Hobart named Australia's most restrictive city for planning
Hobart has been identified as the most restrictive capital city in Australia for planning, according to the Australian Zoning Atlas, which found 97 per cent of the city's residential land is subject to restrictions that limit new housing.