Low commencements contributing to housing shortage… set to get worse says UDIA National
The latest ABS figures showing the number of dwellings commenced, completed, under construction and in the pipeline, underscore UDIA National’s ongoing messaging that the nation faces a chronic housing supply crisis, exemplified by critically low levels of rental accommodation across most major housing markets and sky-high housing affordability pressures.
“With the total number of dwelling units commenced in Australia falling 5.2% to 45,489 dwellings in the September quarter, and the absence of rapid supply improvements, it is clear that things are set to get materially worse in the face of a significant uplift in demand, flowing through a higher than anticipated increase in international migration,” said Maxwell Shifman, UDIA National President.
September quarter commencements were 21.5% lower than 12 months earlier, the fifth consecutive quarter of reduced commencements. This highlights the new home builds stimulated through the HomeBuilder scheme have largely washed through the system and new dwelling starts are trending sharply downwards, particularly in multi-unit residential.
Source: ABS (seasonally adjusted series)
“Reinforcing the alarming trend of pipeline retraction, total dwelling approvals for November 2022 declined 4% on a three-month average basis and were down 19% on a rolling 12-month basis – showing that the nation-wide housing shortage is not being adequately addressed via properly enabling new supply,” said Mr Shifman.
Deanna Lane | National Media & Communications Manager | 0416 295 898 | firstname.lastname@example.org