MBA: Want real improvement on cost-of-living? Build More Homes for Aussies.

26 February 2025

New Australian Bureau of Statistics Data released today showed the rate of underlying inflation increased to 2.8 per cent, and building activity in the December 2024 quarter saw a modest increase of +0.5 per cent.

While the annual rate of headline inflation remained steady at 2.5 per cent during January, the rate of underlying inflation rose to 2.8 per cent.

Rental prices, one of the worst sources of inflationary pressure, have risen by +5.8 per cent in the 12 months to January 2025 and the cost of a new home has risen about +40 per cent from pre-COVID-19 levels.

Despite the inflationary pressures, construction activity saw a modest increase, with the majority of that coming from Engineering Construction, which saw activity up by +1.8 per cent during the quarter, and residential construction with a more modest +0.9 per cent rise.

Non-residential construction suffered a -3.1 per cent reverse during the quarter, with activity now down -9.6 percent compared to a year ago.

Quotes Attributable to Denita Wawn, CEO Master Builders Australia.

“Today’s data release makes it clear, if governments want to deliver real improvements to the cost-of-living, they need to build more homes for Aussies.

“We know what the problems are and how to fix them. We must focus on increasing productivity, reducing the costs of new builds and encouraging more private investment in the sector.

“With a federal election to be called any day now, Master Builders Australia is calling on all politicians and political parties to commit to removing the roadblocks that slow down new builds and let the industry deliver the new homes and infrastructure Australia desperately needs.”

Quotes Attributable to Shane Garrett, Chief Economist Master Builders Australia.

“Though headline inflation remained steady, the rate of underlying inflation ticked up, and this is a better measure of precise pressures in the economy.

“Higher density home building starts are at their lowest in over a decade, and it is no coincidence that rental costs keep deteriorating in these circumstances.

To help with cost-of-living pressures, it is vital that the build times for all types of new homes are sped up and that action is taken to reduce the cost of creating new dwellings.”

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