Home building approvals slow as construction costs rise
There was a steady decline in the amount of new residential construction that was approved during 2022, according to the latest data from the Australian Bureau of Statistics.
A total of 188,765 home building approvals were issued in 2022, compared to 226,629 the year before – a reduction of 16.7%.
Although approval numbers jumped around throughout 2022 – higher in some months, lower in others – the clear trend was down.
“Much of the decline between 2021 and 2022 was the expected consequence of the end of the HomeBuilder grant in 2021,” Housing Industry Association chief economist Tim Reardon said.
“The market was also cooling as the cost of construction rose, and the change in consumer preferences due to the pandemic desire for space, eroded.”
Mr Reardon said builders are still working through a “significant pipeline of work”, and that the slowdown in building approval numbers “will not hit building activity on the ground until late 2023”.
Need a construction loan? Let’s talk.
Hit the button below to arrange a conversation with one of my loan specialists to find a deal that’s best for your situation.
We partner with over 50 lenders so you can find the perfect solution
Do you have questions about mortgages or loans?
Ask us in the comments below