Call to reform housing construction in Australia

Friday 23 Feb 2024

 
The Australian housing market is experiencing a significant slowdown, with the number of new home construction dropping dramatically from 42,000 in June 2021 to less than 23,000 in the September 2023 quarter. This decline is attributed to a combination of rising material costs, higher mortgage rates, and decreased consumer confidence.

Builders are under stress, as projects shrink and existing contracts cancelled due to cost increases exceeding initial budgets. First- home buyers are particularly impacted, facing significant affordability challenges due to increased costs and tighter lending restrictions.

The timber industry is seeing mixed effects, with some regions facing flow-on effects from the slowdown while others remain buoyant due to previous investments.

Industry experts express cautious optimism for a potential rebound in 2024, but call for ongoing support measures for first-home buyers. Proposed solutions include reforming stamp duty, accelerating land release, and loosening lending restrictions to increase market accessibility.

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Source: ABC South East SA


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