{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics 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 Planning & safety solutions Building & planning services How can safety solutions help you? Independent site inspections Solutions for your business Contracts Online HIA Tradepass HIA SafeScan Advertise jobs Trusted support & guidance Contracts & compliance support Professional services Industrial relations Member savings Toyota vehicles The Good Guys Commercial Fuel savings See all
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 Falls from heights Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects COVID-19 Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand A job in the industry Get your builder's licence Continuing Professional Development (CPD) 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 products
HIA products $vuetify.icons.faArrowRight
Shop @ HIA Digital Australian Standards Contracts Online Shipping & delivery Purchasing T&Cs See all Products Purchase NCC 2022 Building codes & standards Economic reports Hard copy contracts Guides & manuals
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 lending remains at record low levels

Media release

New home lending remains at record low levels

Media release
“The number of loans issued for the purchase or construction of a new home over the past year, remain at their lowest level in more than two decades,” stated HIA Chief Economist Tim Reardon.

The ABS released the Lending to Households and Businesses data for February 2024 today, which provides statistics on housing finance commitments.

“The number of loans issued for the purchase and construction of new homes increased by 3.6 per cent in February compared to the previous month,” added Mr Reardon. 

“Despite this rise, lending to build and purchase a new home remained 3.6 per cent lower in the three months to February 2024 than at the same time last year.

“This is a deeper and more sustained downturn in lending for home building than any other period observed in the past 20 years. 

“This low level of lending is consistent with other leading indicators of home building activity, such as new home sales and building approvals, which continue to signal an ongoing slowing in the volume of homes commencing construction. 

“The rise in the cash rate is the primary cause of this poor result in new home lending. Higher interest rates are compounding the impact of the rise in the cost of construction caused by elevated land, labour and material prices. 

“This is further exacerbated by macroprudential rules that remain overly restrictive.

“The slowing in lending is most evident in the largest states of New South Wales and Victoria. Since interest rates were raised in May 2022, new home lending in these two states have fallen by more than one-third.

“The slowing in home building activity appears set to continue and will drag on economic growth through the rest of this year," concluded Mr Reardon.

In original terms, the total number of loans issued in the three months to February 2024 for the construction or purchase of new homes rose in Western Australia by 28.2 per cent compared to the previous year, followed by South Australia (+6.7 per cent) and Queensland (+0.5 per cent). The other jurisdictions saw declines in new home lending compared to the previous year, led by the Northern Territory (-34.3 per cent), followed by Tasmania (-31.8 per cent), the Australian Capital Territory (-27.9 per cent), New South Wales (-12.4 per cent), and Victoria (-5.9 per cent).

Lending for purchase and construction of a new home

Source: ABS Housing Finance

For more information please contact:

Tim Reardon

HIA Chief Economist

Thomas Devitt

HIA Senior Economist
Latest articles
View all news $vuetify.icons.faArrowRight
24 May
Boosting apprentice numbers must be the key focus of review

“The number of new apprentices entering the building industry will not be sufficient to fill the labour supply gap that will prevent the industry reaching the Housing Accord’s target of building 1.2 million new homes over the next five years,” HIA Executive Director, Future Workforce, Geordan Murray said today.

24 May
Are you interested in doing Government funded building work?

You may be aware that the Federal Government has committed to building 1.2 million homes over the next 5 years. To support this commitment, the Federal Government, through Housing Australia, is funding residential building work.

24 May
Jurisdiction of the Federal Safety Commissioner

Are your interested in tendering for federally funded government building work? Use HIA’s flowchart to help you determine if you are required to comply with the Federal Work Health and Safety accreditation scheme.

23 May
Home building hotspots in North Queensland revealed

“There were five areas in North Queensland that were identified as home building and population hotspots,” stated HIA Executive Director - North Queensland, Peter Fry.