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3 July 2024
New building approvals data from the Australian Bureau of Statistics has shown a glimmer of hope with new home building approvals rising 5.5 per cent but builders warn we are still on track to fall short of 1.2 million homes.
Master Builders Australia chief economist Shane Garrett said detached house building approvals rose by 1.3 per cent, reaching their strongest monthly total since October 2022.
“During May, higher density home building approvals saw growth of 14.2 per cent, which is a particular area of the market that needs to see a significant increase in activity.
“However, over the year to May 2024, just 164,000 new homes were given the green light, well below the 240,000 needed per year.
“If new home building levels remain this low, we will only manage to build 820,000 over the next five years,” Mr Garrett said.
CEO Denita Wawn said Monday marked the first day of the Housing Accord race to building 1.2 million homes but we are not race ready.
“Governments have had over 600 days to align all policy levers and help put the industry in the best possible position to build enough new homes.
“While there’s been some progress at a state and federal level, particularly in the housing portfolios, it has simply not been fast enough or is being undermined by other policies.
“Simply put, investment in new home building does not stack up without further reform.
“Industrial relations laws, worker shortages, slow planning approvals, a lack of critical infrastructure, high developer taxes and charges, and licensing delays all add to the cost and time it takes to build.
“We need to build a significant amount of higher-density homes, particularly to relieve the pressure on the rental market, but the builders who are relied upon to deliver these projects are now hamstrung by restrictive CFMEU pattern EBAs,” Ms Wawn said.
Media contact: Dee Zegarac, National Director, Media & Public Affairs
0400 493 071 | dee.zegarac@masterbuilders.com.au