March 2024

Key Insights

• The UDIA Housing Index (UHI) for the March Quarter 2024 highlights that the national housing market continues to be severely impacted by very high costs and elevated demand, with supply levels remaining at historical lows.

• The high-cost environment (for developers and consumers) allied with the strong rebound in demand (underpinned by the highest rates of population growth recorded in two decades) versus a very weak national dwelling supply profile (with dwelling approvals and dwelling commencements at decade lows) continues to drive the UDIA Housing Index to well below average levels of performance.

• The current residential market dynamics are driving strong dwelling price growth and a further erosion of housing affordability. The lack of an adequate new dwelling supply response has contributed to the ongoing crisis in the national rental market with stock availability at record lows.

• There is no indication that pressure is easing in the construction employment sector with job vacancies around twice the long-run average. With a retracting forward supply pipeline and an inadequate workforce to service current levels of demand let alone the elevated levels flowing through the national housing market is set to remain mired in the current crisis conditions for at least the next two years.

• These extremely challenging housing market conditions underscore the need for government authorities across the nation to work arm-in-arm with the residential development sector to devise many and varied (locally appropriate) solutions to help unlock new dwelling supply faster and increase the overall capacity of the Australian new build housing sector.

• The Victorian and NSW housing markets are currently far weaker than the national average, with QLD returning to a stronger level of performance with the WA market continuing to shoot the lights out with a UDIA Housing Index result for the March Quarter 18 points higher than the national average.

The Interactive UDIA Housing Index (UHI) & UDIA Housing Dashboard

Latest data refresh: 19 June 2024

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