Revised housing outlook for Victoria
May 20, 2020
HIA has just released new housing forecasts in light of the COVID-19 pandemic.
Victorian housing starts are expected to be down by 12.7% this financial year, and decline by a further 33.8% in the 2020/21 financial year. If this transpires, the commencement of new homes in Victoria will have fallen over 40% from last year to next and across the country, half a million jobs in the sector will be at risk.
COVID-19 restrictions have caused a shock to the economy through lower sales and high levels of cancellations, which will see a contraction of home building activity in the second half of this year. Stimulating demand so that the existing housing workforce can be retained and can deliver the homes Victorians need this year has never been so important. HIA is working with the State Development Taskforce and has put forward a number of ways in which the state government could assist with a housing-led recovery.