Commencements of detached houses continue to decline into 2023

“Australia commenced 26,265 new houses in the frst quarter of 2023, down by 16.4 per cent on the same quarter last year and 39.1 per cent fewer houses commenced than during the peak in the June Quarter 2021,” stated HIA Senior Economist, Tom Devitt. The ABS today released its building activity data for the March 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.

“This decline in detached housing commencements is part of the ongoing cooling of the market that is expected to continue well into next year,” added Mr Devitt.

“New home sales have declined sharply since the RBA started increasing interest rates last May. This is compounding the high volume of earlier projects that are being cancelled across the nation as home buyers struggle to secure fnance in the face of ballooning home building and fnance costs.

“This produced the frst quarter in almost three years that Australia has completed more houses in a threemonth period than it has commenced. Unfortunately, this was driven by the decline in

28,094 detached houses completed in the frst quarter of 2023, 9.6 per cent fewer completions than in the same quarter make it very diffcult for builders to complete the signifcant volume of work taken on during the pandemic. way down from the 2530,000 multi-units that were commenced each quarter during the 20152018 apartment boom. commencements, not a pickup in completions.

“There remains almost 104,000 houses under construction in the frst quarter of 2023. This has been a broadly stable volume over the last 18 months and almost double the 57,500 that were under construction heading into 2020.

“Costs and supply uncertainties are also holding back the multiunits sector.

“There are still 136,000 multi-units under construction around Australia. These need to be completed in order to help accommodate the rapid return of overseas migrants, students and tourists that Australia has seen since it re-opened its borders in late 2021.

“There were only last year.

“Ongoing labour constraints continue to

“Just 19,981 multiunits were commenced in the frst quarter of 2023, and 17,266 completed. This is a long

“Incredibly tight rental markets around the country require concerted efforts to increase the supply of housing,” concluded Mr Devitt.