A record year of housing construction in Australia is set to be even bigger than expected. The Housing Industry Association’s (HIA) National Economic and Industry Outlook Report Autumn Edition 2021 is forecasting more than 143,700 new builds in 2021, and that renovation activity will also hit record levels.
The report attributed the HomeBuilder Scheme and its role in increasing the confidence in the housing market and record-low interest rates and a shift in population away from inner-city areas to regional areas and detached housing. The HomeBuilder scheme attracted more than 121,000 applications around the nation, 99,253 of them for new homes. It is also expected to drive 22,110 renovations.
Building boom by state:
NSW – 27,880
VIC – 43,770
QLD – 30,930
SA – 11,430
WA – 24,110
TAS – 3,430
NT – 760
ACT – 1,430
HIA economist Angela Lillicrap said the surge in activity would keep tradies and builders busy until the second half of 2022. However, she states that this level of activity would not occur again for many years, if not decades, because of the combination of factors contributing to the current boom.
“The key challenge for the industry has shifted from a slump in demand this time last year, to having sufficient supply for materials, labour and land to satisfy this demand,” Ms Lillicrap said.
This spike in activity has put pressure on the supply of building materials, particularly timber.
In contrast, the HIA report also states that multi-units are predicted to decline to 61,360 in 2020-21, an 11.6% decline on 2019-20.