{{ 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

Building loans remain at 15 year low

Media release

Building loans remain at 15 year low

Media release
“Lending for the purchase or construction of a new home remains at its lowest level in 15 years,” stated HIA’s Chief Economist, Tim Reardon.
The ABS released the Lending to Households and Businesses data for March 2023 today.

“The number of loans issued to purchase or construct a new home remained stable in March compared to the previous month, to be 30.7 per cent lower than at the same time last year,” added Mr Reardon. 

“The last time so few loans were issued for the purchase or construction of a new home was in November 2008, when the GFC caused a contraction in building.

“This data confirms that ongoing and significant declines in new home sales will see new home commencements slow significantly in the second half of 2023, under the weight of the higher cash rate.

“There are very long lags in this cycle and the full impact of the RBA’s rate increases are still to fully hit the housing market, let alone the broader economy.

“The weak lending figures observed by the ABS in March will not be apparent in other economic indicators until 2024, when the volume of homes under construction declines more markedly. Given these long lags, the RBA shouldn’t be waiting to see unemployment rising before pausing the increase in the cash rate.

“This month’s data does show that the value of lending for renovations and to owner occupiers and investors increased marginally compared to the previous month, contrary to the trend of the past year. 

“Total new lending increased in March 2023 compared to the previous month by 4.9 per cent, to be 26.3 per cent lower than at the same time last year.

“This pick up in lending is likely to be short lived as the weight of interest rate increases continues to constrain confidence,” concluded Mr Reardon.

In original terms, the total number of loans for the purchase of construction of new homes in March 2023 declined in almost all jurisdictions compared to the same month a year earlier, led the Australian Capital Territory (-37.3 per cent), New South Wales (-36.3 per cent) and Tasmania (-33.0 per cent), followed by Western Australia (-30.6 per cent), South Australia (-29.7 per cent), Victoria (-28.0 per cent), and Queensland (-21.8 per cent). The Northern Territory saw the only increase, up by 26.1 per cent over the year.

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
31 Jul
HIA welcomes key findings of interim Productivity Commission’s report

“The Housing Industry Association (HIA) welcomes the release of the Queensland Productivity Commission’s interim report into construction productivity It is a significant and necessary step toward overcoming the housing supply challenges facing Queensland,” said Michael Roberts, HIA Executive Director Queensland.

31 Jul
Building approvals pick up 2024/25

“New home building approvals in the 2024/25 financial year were up by 13.9 per cent compared to their 2023/24 trough,” stated HIA Senior Economist Tom Devitt.

30 Jul
HIA urges action to back Australian building product manufacturers

HIA is calling on the Federal Government to act urgently to support Australia’s building product manufacturers and suppliers, an industry worth more than $130 billion and critical to the delivery of new housing across the country,” HIA Managing Director, Jocelyn Martin said today.

29 Jul
Amendment NCC 2022 published to align with the Premises Standards

With the delay to decisions on the content of NCC 2025, the ABCB has published a further amendment to the current NCC 2022 which applies from 29 July 2025. The purpose of this minor amendment is to align the NCC with recent changes to the Premises Standards which apply to Class 3 to 9 public buildings, common areas of Class 2 apartment buildings and short-term accommodation