{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationRate rises hit Sydney and Melbourne hardest
Rate rises hit Sydney and Melbourne hardest
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
Send me exclusive tips, early access to new launches, and special offers. I can change my mind at any time.
By clicking Get started now you agree to the terms and conditions and privacy policy.
HIA released its economic and industry Outlook report today. The report includes updated forecasts for new home building and renovations activity nationally and for each of the eight states and territories.
“The RBA’s rate increases are yet to adversely impact the lagging indicators of economic activity like unemployment or inflation, but they are impeding future home building activity,” added Mr Reardon.
“Leading indicators of home building activity including approvals and lending have fallen sharply, to decade lows, and have remained at these levels for most of 2023.
“This will flow through to a significant slowdown in detached home building in 2024, producing the lowest level of new commencements in more than a decade and keeping apartment construction suppressed.
“This low volume of new home commencement is at odds with the goal of increasing the supply of housing stock, especially in the tight rental markets of Sydney and Melbourne.
“The higher costs of delivering a new house and land package, or a new apartment, in Sydney and Melbourne is resulting in a greater impact from the rise in the cash rate in these areas.
“Interest rates helped drive a boom in building through the pandemic and a return to a stable market isn’t likely given the subsequent rise in the cash rate.
“House building activity is set to slow in all regions, except for Western Australia, under the weight of rising interest rates.
“There remains a significant volume of building work still to be completed and as this occurs, home building will drag on economic growth and push unemployment higher.
“The cost of building materials and labour is stabilising on this side of the pandemic, but they are not likely to fall substantially.
“Increasing the volume of new homes commencing construction against the rising cost of borrowing will require governments to lower the cost of shovel ready land, attract more investment especially from overseas and reduce tax imposts,” concluded Mr Reardon.
Detached house commencements declined in 2022/23 to 109,890 which is 22.1 per cent down from the 2020/21 peak. Detached house commencements are expected to decline by a further 10.9 per cent in 2023/24, which will represent the weakest year since 2012/13. Commencements are expected to remain stable in 2024/25, before recovering modestly in the subsequent years and exceeding 110,000 by 2026/27.
Multi-unit commencements also declined in the June Quarter 2023, this produced a total of 62,290 starts in 2022/23, the weakest year since 2011/12. This year is barely more than half the annual peak during the 2015-18 apartment boom. Multi-unit commencements are expected to bounce back by 22.3 per cent to 76,160 in 2023/24, and another 19.0 per cent in 2024/25, remaining above 90,000 for the remainder of the forecast horizon.
HIA Forecast - Australia
For more information please contact:
Closing Loopholes Independent Statutory Review Draft Report
HIA has provided a further submission to the Closing the Loopholes Statutory Review on the release of the Draft Report, challenging the appropriateness of the government’s workplace relations reforms.
HIA launches 2026 Victorian State Election Policy Agenda
Today HIA launched its 2026 Victorian State Election Policy Agenda that calls on all political parties to commit to meaningful steps that will improve the challenging and uncertain environment for all who work in and rely on Victoria’s vitally important home building industry.
Molonglo Town Centre Master Plan progress but immediate barriers remain
The ACT Government’s release of the Molonglo Town Centre Master Plan signals progress on one of Canberra’s key future growth areas, but for builders and developers, the reality is that this project will do little to improve current market conditions or near-term housing supply.
HIA welcomes NCC pause Bill passing Parliament
The Housing Industry Association (HIA) has welcomed the passage of the Building Amendment Bill 2026 through the Tasmanian Parliament today, while noting that the final form of the legislation delivers a more limited outcome than originally proposed.