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The HIA Trades Report released today provides a quarterly review of the availability of skilled trades and any demand pressures on trades operating in the residential building industry.
“The HIA Trades Availability Index deteriorated marginally in the September quarter to -0.65 compared to -0.62 June Quarter 2023,” added Mr Devitt.
“This change, although small, shows that builders found it increasingly difficult to find sufficient skilled trades people to undertake building works.
“The return of overseas workers since the re-opening of international borders in late 2021, has helped ease these constraints over the last 12-18 months, with the Index markedly improved from the -0.92 reading a little over a year earlier.
“Despite this improvement over the past year, the most recent reading highlights how Australia’s home building sector continues to be constrained by some of the most acute shortages of skilled tradespeople on record.
“The RBA’s steep interest rate increases since May 2022 have seen the volume of new work entering the pipeline slowing significantly. This resulted in Australia commencing just 25,390 new houses in the June Quarter 2023, to be one of the weakest quarters of the last decade.
“This fall in the volume of new home starts will ease the acute shortage of skilled trades people, over the next year as the volume of homes under construction continues to slow.
“Australia is expected to have its weakest year in over a decade in terms of the volume of new houses commencing construction in 2024.
“To ensure that Australia has the skilled tradespeople to build the homes needed in the coming years, the industry needs to have continued access to skilled migrants, as well as train and upskill our existing and future workforce,” concluded Mr Devitt.
By trade, the most acute shortages of skilled tradespeople in the September Quarter 2023 remained in bricklaying (Index reading of -1.17), roofing (-0.91), carpentry (-0.88), and ceramic tiling (-0.82).
Across the states and territories, all markets experienced a boom in housing demand during the pandemic, but it was the smaller markets where these booms were most significant. This is why the most acute shortages of skilled tradespeople in the September Quarter 2023 were in Queensland (-0.85 in the capital, -0.94 in the regions), South Australia (-0.75, -0.92) and Western Australia (-0.71, -0.77), compared to New South Wales (-0.62, 0.60) and Victoria (-0.59, -0.57).
“The median price of residential land sold nationally jumped by 6.8 per cent over the 2024/25 financial year, more than three times faster than consumer price inflation over the same period,” stated HIA Chief Economist Tim Reardon.
“The Housing Industry Association (HIA) is calling on all parties to park the games and fast track the delivery of the long overdue EPBC reforms by the end of this year,“ HIA Managing Director, Jocelyn Martin said today.
The Housing Industry Association (HIA) welcomes the announcement of an audit into the Housing Australia Future Fund (HAFF) but cautioned that the review should not delay or derail the urgent task of increasing Australia’s housing supply, HIA Managing Director Jocelyn Martin said today.
“The announcement that the NSW Government will fast-track a major rezoning of Gosford City Centre, unlocking 1,900 new homes across 283 hectares, provides an exciting opportunity for the Central Coast,” commented HIA Hunter Executive Director, Craig Jennion.