Number of Homes Under Construction Reaches Record High
By Gerv Tacadena
Residential properties that started building continued to pile up, pushing the number of homes still under construction at a new record high.
According to the latest data from Australian Bureau of Statistics covering the September 2022 quarter, the total number of dwellings under construction have reached record highs since December 2021.
In fact, the total number of residential properties under construction reached a new record of 244,479 in September.
Over 104,000 detached houses are still under construction across the country, almost double the pipeline that existed in mid-2020.
During the quarter, there were only 29,153 detached houses completed, just 2.5% up on the same time the previous year.
Meanwhile, the number of homes reaching completion remains no higher than those being commenced with 29,177 new projects started during the quarter.
Housing Industry Association (HIA) senior economist Tom Devitt said supply constraints were holding back completion of these projects.
“Materials constraints have plagued builders over the last two years, but the shortage of skilled trades is the number one constraint,” he said.
Looking at commencements, there appears to be a slowdown across housing types.
New house commencements continued to decline in the quarter with a further 4.9% fall.
Commencements peaked in the previous cycle in mid-2021 and are expected to continue to decline into 2024.
“The volume of houses under construction is expected to keep Australia’s home builders busy this year, despite the slowdown in the number of homes expected to commence construction,” Mr Devitt said.