The residential home construction industry is warning that the building boom in Australia has ended and is expected to fall to levels not seen since 2012.
In its latest Economic and Industry Outlook Report, the Housing Industry of Australia (HIA) said the consecutive cash rate increases that began in May 2022 brought an end to the building boom.
“There was a large volume of work in the pipeline when rates started to rise in May 2022, and there remains a record number of homes under construction, but this will shrink quickly as market confidence continues to fade,” HIA Chief Economist Tim Reardon said.
He noted that by the end of 2022, lending for the purchase or construction of a new home had already fallen to its lowest level since 2012….