Building activity remains weak despite builders being ready to go

Master Builders says new home building starts have risen slightly during the March 2024 quarter but remain too low to meet Housing Accord targets.

Newly released Australian Bureau of Statistics data has shown an increase of 0.5 per cent in the number of new home building starts.

Shane Garrett, chief economist at Master Builders Australia, welcomed the news but warned Australia is still well off the pace required to build 1.2 million new homes over five years.

“The increase was driven by a 4.6 per cent expansion in new detached house commencements, however, higher density dwelling starts sank by 5.5 per cent.

“Work began on just 158,798 new homes across Australia over the year to March 2024, the weakest 12-month period for new home starts since 2012.

“Unfortunately, despite the slight improvement in home building, non-residential building activity dropped by 6.8 per cent during the quarter.”

CEO Denita Wawn said while we welcome a slight bump in building starts, a stronger rebound is needed.

“Building activity is a key performance indicator for the health of the broader economy. We know when the building and construction industry is strong, so too is the economy.

“Australian builders are willing and able to build new homes, but they are being held back by worker shortages, restrictive and costly union pattern EBAs, slow building approvals, and high taxes.

“We need governments to take a holistic approach to the housing crisis and make reforms across portfolios to put us on the right track.

“The clock is ticking for us to get on the right track, hopefully these bumps aren’t too little too late for the National Housing Accord.”

Media contact: Dee Zegarac, National Director, Media & Public Affairs
0400 493 071 | dee.zegarac@masterbuilders.com.au