Boosted Grant: Queensland’s Housing Challenges Addressed
In a proactive response to the declining home ownership rates among young…
31 January 2022
In a 2022 HIA Media Release, HIA Economist Tom Devitt states that ‘the decline in new home commencements in the September quarter was not a reflection of a slowing market… but the availability of land, labour and materials.’
The ABS building activity report for the September 2021 quarter shows that detached homes commencing construction was at the highest rate than ever before. Even with lockdowns in Melbourne and Sydney, there were 36,000 new house commencements.
This is partly due to the introduction of the HomeBuilder grant, which showed a 12.8% increase in house commencements over the pre-HomeBuilder record. Multi-unit commencements were also up by 11.7% than the previous year.
The volume of approved-but-not-yet-commenced work is at its highest level in over a decade, due to building, labour and material delays, but consumers remain interested in detached housing, boosting the economy and supporting the construction industry.
Other factors at play include the pandemic, pushing households towards lower density living and boosting record low-interest rates. Consumer confidence is rising and despite building delays, the boom is expected to support employment rates well into 2023.