{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics Insights Data & forecasts Tailored research and analysis Advocacy & policy Advocacy Policy priorities Position statements Submissions News and inspiration Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder & manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies & tool insurance Member perks Toyota vehicles The Good Guys Commercial Fuel savings See all Planning & safety solutions Building & planning services Safe Work Method Statements (SWMS) Solutions for your business Contracts Online Advertise jobs Trusted support & guidance Contracts & compliance support Industrial relations
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 Get involved Become an award judge Join a committee Partner with us Our initiatives HIA Building Women GreenSmart Kitchen, bathroom and design hub Get to know us Our members Our people Our partners Support for you Charitable Foundation Mental health program
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 2024 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

New home commencements in 2023 were the lowest since 2012

Media release

New home commencements in 2023 were the lowest since 2012

Media release
“There were only 163,836 new homes that commenced construction in 2023, the lowest volume of starts in over a decade, and far from the 240,000 required each year to meet the Australian government’s target of 1.2 million new homes over the next five years,” stated HIA Chief Economist, Tim Reardon.

The ABS this week released its building activity data for the December Quarter 2023. This data provides estimates of the value of building work and number of dwellings commenced, completed and under construction across Australia and its states and territories.

“There were 30,062 detached houses that completed construction in the December Quarter 2023, but only 23,893 new houses commencing construction,” added Mr Reardon.

“This was one of the strongest quarters of house completions of the last five years, up by 4.3 per cent compared to the previous quarter to produce a total of 114,178 completions in 2023 calendar year.

“New house commencements, however, have been declining for over two years, with a small 2.9 per cent uptick in the December quarter after an unexpectedly weak September quarter. This resulted in just 99,708 new detached house commencements in 2023, the lowest in a calendar year for a decade.

“With commencements at a decade low and completions at elevated levels, the result is that the volume of houses under construction is falling rapidly. The volume of homes under construction fell by 7.9 per cent in the December quarter albeit from record high levels over recent years.

“Commencement of multi-units also remains around decade lows, with a 2.1 per cent decline in the December quarter bringing the calendar year to 63,004, even lower than the 63,022 in 2022. These are the two weakest years for multi-unit commencements since 2012.

“This slowing in home building will drag on national economic growth in 2024.

“This has been an incredibly well broadcast housing downturn, with a 2024 trough in detached housing commencements predicted back in May 2022 when the RBA first started increasing interest rates.

“This lack of new work entering the pipeline is occurring at the same time that Australia is experiencing record population growth on top of a pre-existing and acute shortage of housing,” concluded Mr Reardon.

For more information please contact:

Tim Reardon

HIA Chief Economist

Thomas Devitt

HIA Senior Economist
Latest articles
View all news $vuetify.icons.faArrowRight
03 Jul
Home building approvals increase from decade-low levels

“Building approvals for new homes increased by 5.5 per cent in the month of May 2024,” stated HIA Chief Economist Tim Reardon.

03 Jul
Additional Skilled migration welcomed by Housing Industry

Housing Industry Association welcomes the Cook Governments announcement to increase skilled migration in WA and calls for 80% of places to be allocated to housing construction.

03 Jul
Housing key to rebuilding the Territory Economy

“The Housing Industry Association (HIA) has today launched our 2024 NT election priorities, that sets out a 10-point plan for rebuilding the Territory” stated HIA Executive Director - Northern Territory, Luis Espinoza.

02 Jul
Engineered stone ban commences 1 July 2024

Members are reminded that a ban on engineered stone commenced on 1 July 2024 in NSW and the ACT. This will apply to both working with, and installation of the product.