The UDIA Housing Index (UHI) provides a quarterly ‘health check’ on the state of the new build Australian housing market. Drawing from a range of data sources the UHI provides timely indicators of changes in demand, supply and costs for new residential properties across the nation.
UDIA National Research Partner
September Quarter 2024
Key Insights
- The national housing market continues to be severely impacted by high costs, elevated demand and a low supply profile which are collectively contributing to the national UDIA Housing Index (UHI) recording a below average level of performance.
- The UDIA Housing Index for all of Australia weakened by 3.2% in the September quarter to reach 93.12 points which is the weakest reading since the December Quarter 2020 (on seasonally adjusted terms).
- The current UHI reading is 5% below the long run national average and 14% below the peak achieved in June 2021.
- The UDIA Housing Demand Sub-Index decreased by 5.3% in the September Quarter to 120 points which is still 19% higher than the long run average.
- The UDIA Housing Demand Sub-index’s performance remains underpinned by the maintenance of historically high rates of population growth, with the slight weakening in the Sub-Index related to a modest easing of national rental vacancy rates across the September quarter.
- The UDIA Housing Supply Sub-Index continues to languish at historically low levels of activity with an index reading of 91 points which is 12% below the long run average and 21% below peak performance.
- Weighing negatively on the UDIA Housing Supply Sub-Index is the on-going softness of dwelling approvals and dwelling commencements (currently 14% & 21% lower than the long run average respectively) and the ongoing paucity of rental listings
- The UDIA Housing Costs Sub-Index recorded a series high level of 157.1 points in the September Quarter, increasing 2.8% from the June Quarter, which reflects a 49% increase over the last two years. There was a 2.2% growth over the quarter of input costs to housing construction which represents the strongest quarterly growth in this metric since December 2022.
The Interactive UDIA Housing Index (UHI) & UDIA Housing Dashboard
Latest data refresh: 02 December 2024