The Housing Industry Association has released the Spring 2013 edition of its National Outlook housing report card. The card highlights higher levels of new dwelling commencements and steady recovery in renovations investment from a ten year low.
"The improving level of dwelling commencements achieved in 2012/13 will be consolidated this year before moving up a further leg in 2014/15," commented HIA Senior Economist, Shane Garrett.
"Meanwhile, renovations investment is expected to grow in a majority of states and territories after falling to a ten year low during 2012/13," added Shane Garrett.
"Growth in housing starts during 2013/14 will be concentrated in large states like NSW, Queensland and WA," noted Shane Garrett. "Growth in renovations will be much more broad-based, with increases occurring across most states."
"Looking further ahead, we see dwelling commencements lifting above the 170,000 per year mark by 2016/17, matching the highs achieved during the post-GFC stimulus," remarked Shane Garrett.
"Over this timeframe, renovations activity is also likely to increase steadily, reaching $30.3 billion by 2017/18."
"Record low interest rates and strong population growth is driving increased demand for housing. In this context, it is absolutely crucial that planning reforms and infrastructure delivery facilitate the requisite supply of new housing. There currently exist many bottlenecks around land supply, infrastructure and the time taken to achieve planning approval for new dwellings. It is important that both federal and state governments address these obstacles and work with the housing industry in delivering a sufficient supply of affordable housing," concluded Shane Garrett.