Skip to content
Building Construction, Federal Budget

Higher density building approvals drop to 12-year low

Master Builders Australia 2 mins read

New data from the Australian Bureau of Statistics shows with three months to go until the Housing Accord clock starts ticking, higher density approvals have hit their lowest monthly figure in almost 12 years.

“Total new home building approvals slipped by 1.9 per cent during February,” said Master Builders Australia Chief Economist Shane Garrett.

“There was considerable variation within the figures: detached house approvals recorded a decent gain of 10.5 per cent during the month. However, this was undone by higher density approvals plummeting by 20.8 per cent.

“Over the year to February, just 163,100 new homes received approval across Australia – the lowest in 11 years.

“This stands in stark contrast to the annual target of 240,000 new homes under the National Housing Accord.

“For us to achieve this calibre of housing output, approvals would need to increase by 48 per cent on current levels,” Mr Garrett said.

CEO Denita Wawn added: “Despite the community's high demand for more housing, especially higher density rentals, there is a mismatch in the number of homes coming through the pipeline.

“When it comes to signing new contracts, the pen is not making it to paper as the investment does not stack up.

“Resolving supply constraints should be the focus of all political parties in fixing our housing crisis. Until they are addressed, Australians will continue to struggle with housing affordability.

“We must ensure that sufficient support is provided to encourage investment in housing development this includes steering clear of changes that would dampen the investment environment.

“Currently, the biggest handbrake on delivery of homes is the high costs associated with labour shortages.

“We heard only recently from BuildSkills Australia that the industry needs 90,000 workers in the next 90 days. Master Builders also estimates this needs to grow to around half a million over the next three years.

“The Federal Budget provides an opportunity to attract more people into the industry through industry-led apprenticeships, better targeted skilled migration and reskilling migrants already in the country.

“But it’s not the only challenge. More work needs to continue at a state/territory government level to speed up their commitments for planning reform, address high developer charges, and ensure there is enough critical infrastructure to support new communities or higher density,” Ms Wawn said.

 

Media contact: Dee Zegarac, National Director, Media & Public Affairs

0400 493 071 | dee.zegarac@masterbuilders.com.au

 

Media

More from this category

  • Building Construction, Engineering
  • 23/04/2024
  • 10:34
RMIT University

Energy-smart bricks keep waste out of landfill

Engineers have invented energy-efficient bricks with scrap materials, including glass, that are normally destined for landfill. RMIT University engineers collaborated with Visy – Australia’s…

  • Contains:
  • Building Construction
  • 23/04/2024
  • 08:00
SafeWork NSW

PACKAGING COMPANY FINED AFTER WORKER SUSTAINS CRUSH INJURIES IN WORKPLACE INCIDENT

23 APRIL 2024 Visy Board Pty Limited (Visy) has been fined $375,000 in the NSW District Court after an employee sustained crush injuries to his left ankle following a workplace incident where the ruling found the risk of injury was “patently obvious”. SafeWork NSW launched the prosecution after a 25 June 2020 incident where a man employed by Visy was working on a conveyor at the company's Smithfield worksite when he unknowingly stepped into the path of a trolley car. This trolley car hit the worker’s left leg, causing it to be trapped between the trolley car and conveyor, crushing…

  • Contains:
  • Federal Budget, Property Real Estate
  • 23/04/2024
  • 07:12
Everybody's Home

Report underscores desperate need for more social housing

Everybody’s Home is urging the federal government to boost social housing in its upcoming Budget, as a new report paints a dire picture of rental affordability across the country. Anglicare’s Rental Affordability Snapshot lays bare a harsh reality: affordable rentals are almost non-existent for those on income support, and scarce for full-time minimum wage earners. The report also shows increases to rental supply in parts of the country hasn’t made renting more affordable. Everybody’s Home spokesperson Jennifer Kirkaldy said more social housing is key to easing the housing crisis. “Every year the Rental Affordability Snapshot serves as a sobering reminder:…

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.