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{{propApi.successMessage}} {{region}} Change locationRate increase unnecessary
Rate increase unnecessary
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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.
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HIA welcomes Planning System reform
“The Housing Industry Association welcomes the Premier’s announcement today of the NSW Planning System Reforms Bill 2025,” said Brad Armitage, Executive Director NSW.
Victoria’s Housing Statement – planning reforms not enough
“The Victorian government’s Housing Statement is almost two years old and while a number of significant planning reforms have been introduced the housing target of 800,000 will not be met as homes need to be built and not just planned,” stated HIA Executive Director Victoria, Keith Ryan.
It’s time to move from planning to doing
The Housing Industry Association (HIA) has tabled its submission calling on the Federal Government to act swiftly on the Productivity Commission’s Five Pillars reforms to lift productivity and unlock new housing supply.
Upgrading existing homes the best way to combat climate change
The Housing Industry Association (HIA) has appeared today at the Senate Inquiry into Climate Risk Assessment to advocate that the Federal government should drive a national, coordinated plan to make Australia’s homes stronger and safer in the face of a changing climate.