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Australia’s housing crisis has taken another blow with new data from the Australian Bureau of Statistics (ABS) showing building approvals heading further in the wrong direction.
Total approvals fell 6 per cent in August, driven by steep declines in apartments and townhouses, while detached house approvals also dropped.
Attributable to Master Builders Australia Chief Economist Shane Garrett:
“The total number of dwellings approved fell by 6.0 per cent in August. This was driven by an 10.6 per cent drop in approvals for apartments and townhouses.
“Detached house approvals also declined by 2.9 per cent in August, and are now 3.8 per cent lower when compared to the same month last year.
“This trend is deeply concerning because approvals are the pipeline for tomorrow’s housing supply. With apartment approvals in particular now at some of the lowest levels seen over the past 12 months, the industry faces serious challenges meeting demand.
“The only way out of the housing crisis is to build more higher density housing. Apartments and townhouses must make up at least half of all residential construction if we are to meet demand and give Australians more affordable options in the places they want to live.”
Attributable to Master Builders Australia CEO Denita Wawn:
“There is a clear gap between policy ambition and reality, with approvals going backwards, not forwards.
“Approvals heading backwards are a flashing red light; unless the Government acts now to fix the pipeline, Australia’s housing crisis will only get worse.
“Red tape, constant regulatory changes and a crippling skills shortage are draining productivity, with too few apprentices and overseas-qualified workers tied up in bureaucracy, making it harder to deliver homes at speed and scale.
“Fast-tracking recognition of overseas-qualified workers, implementing a dedicated construction visa pathway, and offering stronger incentives for employers to take on apprentices are critical to building the workforce we need.
“Builders are struggling to make the numbers work. Construction costs have jumped more than 40 per cent since 2019, and rising finance and insurance costs are pushing too many projects off the table. Without urgent action to ease pressures and restore confidence, more projects will stall before they even start.”
“The Treasurer’s Economic Reform Roundtable highlighted the importance of productivity and skills to lifting housing supply, but we now need to see action on the ground to get projects moving.”
Media contact: Dee Zegarac, National Director, External Affairs & Engagement
0400 493 071 | dee.zegarac@masterbuilders.com.au