Media Release
10 April 2024
Australian Bureau of Statistics (ABS) data out today revealed that national dwelling commencements fell a concerning 6.4 per cent in the December 2023 quarter when compared with the same quarter last year, in seasonally adjusted terms.
This outcome was driven by a massive drop-off in new private sector houses built – 14.9 per cent December 2023 quarter on December 2022 quarter. Today’s result showed that December 2023 quarter dwelling commencements were at their second lowest level since mid-2012, following the low of the September 2023 quarter.
“Dwelling completions for 2024 are currently projected at approximately 150,000, which is approximately 90,000 dwellings short of the Government’s target of 240,000 per year,” according to PowerHousing Australia CEO, Michelle Gegenhuber.
PowerHousing research using ABS data for population growth and building activity suggests that we’re currently running at a shortfall of approximately 22,000 new dwellings built per quarter.
Rental market vacancy rates remain at record lows and the ABS’ CPI data indicates that rents grew 7.3% in 2023. In addition, the data released in March indicated that the mean price of residential dwellings rose by $13,400 to $933,800, which is out of reach for many Australians. Research from Oxford Economics has shown that an extra 1 per cent increase in housing stock reduces the cost of housing by about 2-3 per cent.
With housing affordability at historic lows, a critical lack of rental supply and community sentiment focused on access to housing the Federal Government and Housing Australia have moved exceptionally quickly to implement the first round of the $10 billion Housing Australia Future Fund (HAFF) within 38 days of legislation being passed.
The community housing sector has responded to this valuable initiative with thousands of housing projects across the country and PowerHousing community housing members ready to deliver in excess of 22,000 new homes. Maximising HAFF funding in this initial round provides an opportunity to stimulate a currently untapped construction pipeline ready to deliver on desperately needed housing supply.
“This initial funding round is the first major opportunity in a decade to make inroads on housing affordability, especially for low to moderate income earners who are hurting the most,” said Ms Gegenhuber.
“Prudence suggests that arbitrary quotas in each funding round must be dismissed, and that Housing Australia must be empowered to approve financing for as many viable projects as possible.”
PowerHousing is calling on bi-partisan support to:
1) Front-load project financing approvals within the 5-year program following the deadline of the first funding round on 22 March
2) Provide assurance of the continuity of the HAFF/National Housing Accord program to provide building pipeline certainty and
3) Expand and embed the existing HAFF / NHA program including a doubling of Federal Government investment.
The following States and Territories recorded declines in dwelling commencements in the December 2023 quarter on December 2022 quarter in seasonally adjusted terms- Western Australia (-31.3 per cent), Tasmania (30.2 per cent), Northern Territory (-30.1 per cent), South Australia (-8.0 per cent), New South Wales (-5.9 per cent), and Queensland (-4.6 per cent).
For further detail contact:
Michelle Gegenhuber, PowerHousing Australia CEO – 0447 069 812 or
Matt King, PowerHousing Australia – Director of Economics & Research – 0480 553 973