Master Builders Australia is calling for more action to tackle labour and supply shortages as new home builds drop while houses under construction hit a record high.
Master Builders Australia is calling for more action to tackle labour and supply shortages as new home builds drop while houses under construction hit a record high.
The Australian Bureau of Statistics’ latest data on building activity shows the total number of dwelling commencements dropped by 5.2 per cent to 45,489 from the June to September quarters.
The drop in total new house builds signifies a 21.2 per cent decrease over the 12 months to September 2022.
Private sector house builds decreased by 4.9 per cent to 27,895 in September, and private sector residential builds fell 5.2 per cent to 15,618 in the same period.
Despite the number of home starts decreasing, the number of houses under conduction hit a record high of 244,479 in September.
Master Builders Australia chief executive Denita Wawn said they were starting to see the demand for new home ease as cost of living and interest rates increase.
She said the industry was facing immense pressure to deliver projects currently in the pipeline.
“There is still a record number of homes under construction, but due to supply bottlenecks such as labour and material shortages, the pace at which new homes can be built has slowed down,” Ms Wawn said.
“Despite strong intention from governments and industry to reach a target of one million homes under the Housing Accord, the data highlights that more needs to be done to tackle labour shortages and other supply constraints to speed up the delivery of new homes.
“Labour shortages can best be addressed over the short and medium term by making it easier for migrants to work in Australia.”
Master Builders forecasts new home builds will fall short of 200,000 per year, the volume of output needed to meet demand.
Ms Wawn said their forecasts indicated the threshold would not be exceeded until 2026.
“Our 2022 to 2026 residential forecasts predict a bumpy road with a downturn over the next few years,” she said.
“Forecasts will trend upwards as inward migration and interest rates stabilise, and pent-up demand shifts the dial.
“Builders continue to face regulatory burdens and prolonged delays in approvals for building applications, occupation certificates and land titles.”
