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“Each of these indicators of future economic activity are falling or around, some of their lowest level in decades.
“The fastest increase in the cash rate in a generation is the primary cause of these poor results in indicators of future growth.
“The RBA’s monetary policy tightening is yet to adversely impact the lagging indicators of economic activity like unemployment or inflation.
“There were very long lags in this cycle due to the strength of the economy at the start of the RBA’s rate rising cycle in the first half of 2022.
“Today’s rate rise is unnecessary and will cause further contraction in new home building, constraining the supply of new homes.
“The impact of strong population growth on the national economy and home building cannot be overstated.
“It is helping restore government finances, sustaining retail activity and addressing shortages of skilled workers and it will support new home starts over the course of the decade.
“But strong migration is also obscuring the adverse impact of rising interest rates on key economic data, such as GDP, retail expenditure and house prices.
“Stable and reliable migration has been a cornerstone of Australia’s economic growth. This has been disrupted by two years without migration and then two years of catch up.
“This disruption to migration is now distorting the RBA’s decision making.
“A return to stable business conditions cannot be achieved by sending the building industry through boom-and-bust cycles.
“The RBA should have waited for the full impact of their decisions to date emerge in 2024 before adjusting rates again,” concluded Mr Reardon.
NSW builder Progressive Building took home two national awards at the prestigious 2025 HIA Australian GreenSmart Awards, for a renovation based on passive house principles.
Three NSW builders were announced as winners at the prestigious 2025 HIA Australian GreenSmart Awards, competing against sustainable projects from across Australia.
Victorian sustainable builder Samssons Projects won HIA Australian GreenSmart Multi Dwelling Development for a carbon-neutral, 8-star dual-occupancy project in Melbourne’s inner North.
Western Australian builders took home three awards at the prestigious 2025 HIA Australian GreenSmart Awards announced today in Sydney.