New dwelling commencements are close to their lowest in a decade
Total new dwelling commencements dropped by 6.7 per cent during the December 2022 quarter and are very close to their lowest in a decade, according to the ABS building activity data for the December 2022 quarter.
Luke is joined by Denita Wawn, Master Builders CEO, who says the shrinking size of the new home-building pie is concerning.
“Building and construction activity makes a substantial contribution to the Australian economy. Reverses in new home building will subtract from Australia’s overall rate of economic growth”, says Ms Wawn.
“Higher-density home building has sunk to its lowest in a decade at a time when inward migration is soaring to unprecedented levels. This combination is likely to further exacerbate rental market pressures.”
“A strong building industry is the foundation of a strong economy. The inextricable ties between construction activity and the broader health of the economy are again on display in the current environment.”
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