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Master Builders Australia says new Australian Bureau of Statistics data for the month of August revealing a 6.1 per cent decline in the total number of new home building approvals is cause for alarm.
Despite a 0.6 per cent rise in detached house building approvals, taking the number to a two-year high, the small gain was overshadowed by a sharp reduction in approvals for higher density homes.
“There was a decline of 17.5 per cent in higher density home building approvals during August,” said Master Builders Chief Economist Shane Garrett, “meaning the volume of approvals is now even lower than it was a year ago.
“Over the past year, a total of 166,230 new homes have been approved across Australia. If we remain stuck at this rate of new home building over the lifetime of the National Housing Accord, only about 832,000 new homes will get delivered.
“This would represent a shortfall of over 365,000 homes relative to the 1.2 million new home target set by all levels of government for the Accord.”
Denita Wawn, MBA Chief Executive, warned that high density housing is crucial to ending the housing crisis and easing economic pressures for all Australians.
“If we are to bring about a quick end to the housing crisis, we need a strong and consistent supply of high-density housing to the market,” she said. “It’s disappointing to see such a decline in high density approval numbers taking our housing supply in the wrong direction.
“With higher density building approvals lower now than a year ago, today’s data reinforces the need for serious action on inflation to encourage new homeownership and more private investors into the market to generate urgently needed new homes.
“Delivering greater volumes of new housing at lower cost and at a faster pace will help bring inflation under control sooner and help to ease economic strains for Australians.”
Media contact: Ben Conolly, Media & Public Affairs Senior Advisor
0423 151 666 | ben.conolly@masterbuilders.com.au