This news was welcomed by Housing Industry Association (HIA). HIA Senior Economist, Shane Garrett said back in early 2012 when activity was so low, the prospect of breaking through 180,000 starts within a couple of years was beyond almost everybody’s most optimistic expectations. “There is, however, no avoiding the downside apparent in the recent figures,” he said. “The multi-unit dwelling segment saw a sharp fall during the second quarter of this year, with detached house building also nudging down a little.
“On the renovations side, the volume of work done also fell, with a 3.0 per cent reduction in activity during the June 2014 quarter.” In the June 2014 quarter, new housing starts totaled 45,527 in seasonally-adjusted terms.Despite representing a 6.9 per cent decline on the previous quarter, the figures mean the total starts during 2013/14 was 180,833. This was the highest twelve month total since March 1995.
HIA analysis indicates new housing starts will need to reach around 186,000 annually between now and 2050 to meet requirements. According to CommSec, the strong result for 2013/14 confirms the important role new home building is playing in an economic revival for NSW, with the state emerging as the new leader at the top of Australia’s economic performance ranking.