{{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 locationHome building costs rise less than CPI
Home building costs rise less than CPI
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
The ABS released its Producer Price Index data for the September quarter 2024 today, which provides the latest statistics on input prices across different sectors including the home building industry.
The ABS also released the Lending Indicators data for the month of September 2024 today, which provides the latest statistics on housing finance commitments.
“Disruptions to global supply chains have largely abated, the volume of home building has slowed, and build times are back to pre-pandemic levels,” added Mr Tapang.
“Stable interest rates and construction costs are seeing consumers increasingly engage in new home building.
“This return of confidence is consistent with the 14.3 per cent rise in lending for new home purchase and construction in the September quarter 2024 compared to the same time in the previous year.
“The rise in activity in the new home segment is increasingly driven by a return of more owner-occupiers to the market as unemployment remains low, and interest rates remain unchanged.
“Investors have been also active in building new homes in this cycle amid the shortage of housing, evident in rising rental yields, house prices and increasing activity in the established dwelling market.
“First home buyers have been very resilient in this cycle, despite the rise in the cash rate. Lending to first home buyers in the September quarter 2024 rose by 7.8 per cent compared to the same time in the previous year.
“As is typical of these cycles, the first to return to market are investors, followed by trade-up owner occupiers, first home buyers and increasingly those building a new home. The leading indicators reinforce the suggestion of an increase in home building activity in late 2024 onwards,” concluded Mr Tapang.
Materials price increases were recorded in copper pipes and fittings (+15.1 per cent). This was followed by electrical cable and conduit (+12.9 per cent), electrical equipment (+9.7 per cent), fibrous cement products (+7.3 per cent), and paint and other coatings (+6.5 per cent).
The number of loans issued in the September quarter 2024 for new homes increased by 36.2 per cent in Western Australia compared to the previous year, followed by Queensland (+32.0 per cent), South Australia (+31.0 per cent), the Australian Capital Territory (+23.8 per cent), Tasmania (+10.3 per cent) and New South Wales (+9.4 per cent). Victoria remained relatively unchanged (-0.1 per cent), while the Northern Territory declined by 9.4 per cent over the same period
House Construction Input Price Index, Growth Rates
For more information please contact:
Home building to rebound with interest rate cuts but long-term challenges remain
The number of homes commencing construction in Australia is set to increase over the next few years, driven by strong population growth, low unemployment, and falling interest rates. However, long-term structural issues continue to pose risks to housing affordability and national supply targets, according to the latest outlook from the Housing Industry Association.
More land supply to help Tasmania get back on track
HIA has been calling loudly on the State Government to release more land for new housing, as it is a fundamental element in delivering new homes and supporting housing affordability.
Home owner grants boosted in NT
Are you aware of the first home owners grant has been increased until 2026? Did you know grants are also available for existing homeowners when building new homes? Find out the latest on the HomeGrown Territory grant and FreshStart New Homes grant today.
Victorian housing lags the smaller states
“Victoria is behind Queensland, Western Australia and South Australia in HIA’s latest Housing Scorecard, reflecting a dramatic change in fortunes over the last five years,” stated HIA Executive Director Victoria, Keith Ryan.