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Latest building approvals figures show new home builds continue to remain too low despite an uptick in higher density building.
Responding to data released by the Australian Bureau of Statistics, Master Builders Australia chief economist Shane Garrett said detached house building approvals slid by 1.9 per cent during November.
“Today’s figures mean that just 945,554 new homes have been approved across Australia over the past five years.
“Master Builders has forecast that 2023-24 will see around 170,100 new homes built, well below the 240,000 needed per year to meet the 1.2 million housing accord targets.
“However, there was a modest 1.6 per cent increase in the overall number of new home building approvals during November 2023 thanks to a 7.2 per cent gain in higher density approvals.
“More higher density building will help alleviate some of the pressure in the rental market which has seen big inflationary impacts in the economy.
“Labour market shortages, lack of shovel-ready development, planning delays and interest rate rises continue to be the biggest impediments to home building,” Mr Garrett said.
Master Builders Australia Deputy CEO Shaun Schmitke said: “With a new parliamentary year ahead of us, we hope at the top of all government action lists is how to reduce the time and cost pressures around home building.
“We know the cost of living crisis is currently being exacerbated by stubborn inflationary impacts in housing.
“Any decision taken by Government needs to consider closely the impact it will have on the cost of doing business.
“This is why Master Builders remains deeply concerned about the proposed ‘Closing Loopholes’ workplace reforms that impact independent contractors and the businesses who engage them.
“If you make it harder to engage independent contractors and casuals, you’re ultimately going to make it more expensive to build,” Mr Schmitke said.
Media contact: Dee Zegarac, National Director, Media & Public Affairs
0400 493 071 | dee.zegarac@masterbuilders.com.au