Overcoming shortfall should be top priority, says Master Builders Australia
Despite building activity spiking during the March quarter with a rise in higher density developments and public sector home building, the nation still struggle to meet housing targets, says Master Builders Australia.
Shane Garrett (pictured above left), chief economist at Master Builders Australia, reported a 14% increase in the number of new home building starts during the first three months of 2023. This growth was driven by a 44.8% surge in higher density home commencements.
“56% of the 240,000 new dwellings under construction at the end of March were higher density,” Garrett said. “The sharp increase in higher density home building and public sector home building is desperately needed at a time of severe rental accommodation shortages.”
Commenting further on the building figures, Garrett said at the end of March more than 4,200 new public sector homes were under construction, close to its highest in 15 years. “Disappointingly, the number of new detached house starts dropped by 5.5% over the same period,” he said.
“The figures show around 175,000 new homes were completed across Australia over the year to March 2023 which is expected to house about 440,000 people across the country. This is still falling short of the 200,000 homes needed per year.”
Despite the increase in higher density public sector home building, Master Builders Australia CEO Denita Wawn (pictured above right) said that the challenge of satisfying housing demand in the coming years should remain a top priority.
“State and federal governments are to be commended on their efforts to prioritise social and affordable housing,” Wawn said. “However, we need to pull out all the stops. That’s why it’s vital the Housing Australia Future Fund legislation is passed as quickly as possible.”
“Building enough of the new homes we need is difficult against the backdrop of rising interest rates, high costs, and hesitant demand. Any unfavourable changes to the rules and regulations that apply to home builders magnify these challenges even further.”
“Governments must make it easier, not harder for our industry to do its job effectively and actively pursue productivity boosting policies.”
“The proposed changes in industrial relations will increase the cost of creating new homes by taking a sledgehammer to productivity and tying the hands of business in red tape.”
