New building activity data shows apartment commencements remain at decade lows

2024 was the weakest calendar year for higher-density home starts since 2011, impeding Australia’s ability to ease the housing crisis.

New data from the Australian Bureau of Statistics shows home building ended 2024 on a weak note with new starts dropping by 4.4 per cent during the final quarter of the year.

Master Builders Australia chief economist Shane Garrett said detached house starts fell by 6.0 per cent during the quarter.

“Concerningly, there was an even bigger reverse (-7.6 per cent) for higher density home building commencements.

“Higher density home building has been stuck at a low ebb for years, and the insufficient output of new stock here is a major culprit when it comes to deteriorating affordability in the rental market.

“The performance of higher density home building will be pivotal in determining whether or not we meet our Housing Accord targets. Today’s figures show that the struggle has got even tougher on this front.

“More encouraging was the performance of home renovations activity lifting by 1.5 per cent during the December 2024 quarter and is 4.3 per cent stronger than a year ago.

“This could be a sign that people are opting to renovate over building a new home.

“In positive news around 168,300 new homes were started across Australia during 2024 – a slight increase of 2.2 per cent on 2023.

“The increase was driven by a 7.6 per cent expansion in detached house starts during the year.

“However, higher density home starts sank to their lowest since 2011 following a 5.4 per cent decline,” Mr Garrett concluded.

CEO Denita Wawn added: “Australians are doing it tough. As the cost of living continues to climb, housing remains the single biggest pressure point for families across the country.

“Whether you’re buying your first home, looking to rent, or waiting for social housing, the biggest barrier is a lack of supply.

“The upshot on housing policy at this stage of the election race is it’s currently neck and neck.

“We are far from the finish line. Both have work to do if they want to complete the jigsaw puzzle that is our national housing crisis.

“Fixing supply constraints, delivering more shovel-ready land, investing in enabling infrastructure and skills, reducing red tape, and supporting innovation across the industry – these are the levers we must pull if we want to meet demand.”

Media contact: Dee Zegarac, National Director, Media & Public Affairs

0400 493 071 | dee.zegarac@masterbuilders.com.au