Builders optimistic ministerial reshuffle a chance for coordinated approach as new home approvals decline
Newly released Australian Bureau of Statistics data has shown another slow month for building approvals, with just 13,237 new dwellings approved in June, a 6.5 per cent decline since May.
Concerningly, only 163,000 homes were approved in the 2023/24 financial year, 77,000 homes short of our annual Housing Accord target said Master Builders Australia chief economist Shane Garrett.
“We saw a glimmer of hope during May, but this downturn in June means the industry is starting the Accords period on the wrong foot.
“This was driven by an 18.4 per cent reduction in higher density dwelling approvals, their lowest monthly total since July 2012.
“Annual building approvals are now at their lowest levels in over a decade despite strong signals from government to increase housing supply.
“If approvals continue at this level, Australia will fall 385,000 homes short of the 1.2 million Housing Accord target,” Mr Garrett said.
Master Builders Australia CEO Denita Wawn added: “It’s clear more needs to be done, particularly in policy areas outside of the housing portfolio which are driving up building costs and blowing out construction times.”
“The industry is hopeful that the recent ministerial reshuffle will provide an opportunity for a refreshed ‘whole of government’ approach to the housing crisis.
“Addressing the housing crisis requires a holistic approach with input from multiple portfolios from industrial relations, infrastructure, procurement, immigration, to skills and training.
“Australian builders are willing and ready to get on with the job of building new homes, but they currently have one hand tied behind their back.
“The industry is being held back by worker shortages, slow planning approvals and critical infrastructure delays, as well as high taxes and charges deterring investment. Combined with industrial relations challenges and recent revelations of alleged union misconduct, costs and building times are blowing out.
“Over the last decade productivity in the industry has fallen 18 per cent and over the last five years building costs have increased by 40 per cent,” Ms Wawn said.
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3 comments
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Hans -
Clakka -
New England Cocky
Return to home page“163,000 homes were approved in the 2023/24”
Yet Labor open the floodgates to a bit under 1,000,000 immigrants.
Can anyone say ‘idiots’ without thinking about Labor?
Labor has no interest whatsoever to sure up an adequate supply of housing.
They need to be shown the door until they get their act together.
Maybe let politicians live in tents or cars until they get the maths right.
Oh yes Hans,
The MBA and the HIA, and their crony developers / builders have done sfa leading up to and during the ‘cost of living’ crisis. Immigration out of control, and inflation stimulation were both features of the LNP government well before Albanese Labor came to office.
The crony conga-line of MBA /HIA, despot politicians, land barons, developers and major estate builders and insurers did their darnedest to hang small builders out to dry, along with consumers (significantly comprising immigrants).
Labor is trying to untangle the mess brought on by the LNP during Howard’s era, and their inaction / bad action since the GFC.
@ Clakka: Agreed. Well spoken!!
Funny how an ageing workforce runs out of new skilled tradies when the conditions of employment are linked to payment by the recruits to an avaricious government intent on believing incorrectly that everybody should pay for everything ….. especially education!!
Here in Armidale NSW there is a severe shortage of trained motor mechanics, all building trades and other specialist skills & trades ….. just like the rest of regional & remote Australia.
Meanwhile, the NSW and feral governments continue to overcrowd the Sydney metropolitan area with too many bodies creating too much unhealthy pollutants generating too many admissions to the under-staffed and over-demanded health system>
The answer is simple: DECENTRALISE GOVERNMENT DEPARTMENTS TO MAJOR REGIONAL CENTRES AND THE PEOPLE WILL FOLLOW FOR THE JOBS.
Education of all types should be free, especially to all those participants who complete the course requirements and graduate as journey persons ready to fill the workforce.
Whitlam was correct; free education builds a better nation.