Home builders working through “record pipeline” of projects
There are a record number of homes under construction, according to the latest data from the Australian Bureau of Statistics.
A total of 241,926 home builds were underway in the June quarter, which was up 0.7% from the previous record result recorded in the quarter before.
On the surface, that would suggest the federal government’s plan to build one million new homes (see previous story) in five years is realistic.
However, as Housing Industry Association economist Tom Devitt pointed out, there are “more houses still being commenced than completed”, which means this “record pipeline” of building work is due to limited supply rather than overwhelming demand.
“Supply constraints are continuing to hold back completion of these projects. Materials constraints have plagued builders over the last two years, and shortages of skilled trades have only become more acute,” he said.
“These supply constraints will keep Australia’s home builders busy this year and next as they continue to work down this record volume of detached house projects.”
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