Detached house approvals continue to be elevated compared with pre-COVID levels, meaning projects underway and new work entering the pipeline will continue to keep home builders busy into 2023. Source: Timberbiz
“Detached house approvals increased by 1.8% in the three months to May 2022 to be 14.7% higher than the same three months in 2019,” HIA Senior Economist Nicholas Ward said.
Mr Ward said renovations activity also remained elevated and while the value of renovations approved fell by 1.8% in the three months to May 2022, it was 38.9%higher than the same three months in 2019.
At the end of 2021, there were 75.7% more detached homes under construction than at the end of 2019.
“Activity in 2022 shows the rate of new home building and renovation activity remains strong which will assist in delaying the adverse impact of rising interest rates on building activity, and therefore on the wider economy,” Ward said.
“Encouragingly, investor activity continues to grow. The value of loans to investors in the three months to May 2022 was 36.2% higher than the same three months in 2021,” he said.
“This points to more supply of rental homes in the future, which will help alleviate the severe rental shortage being experienced around Australia.”
