The February 2020 edition of Master Builders Australia’s Industry Forecast reports have just been published and contain projections of building and construction activity out to the 2024/25 financial year across the residential building sector.

“Having been in reverse over recent years, we predict that new home building starts will bottom out during 2020/21 at around 159,000," said Master Builders Australia’s Chief Economist Shane Garrett.

"We then expect that residential building will expand and take dwelling commencements back above the 200,000 mark in 2024/25.

At a Glance:

• New home building will increase after 2020/2021 at around 159,000
• 200,000 homes to be built each year to meet future population growth.
• MBA made submissions for an expansion

“Australia needs around 200,000 new homes to be built each year to meet future population growth.

"Our latest forecasts indicate that we are set to fall considerably short of this requirement for a few years yet.

mba_housing_forecast.jpg

Contribution: MBA

Mr Garrett said the Master Builders’s Federal Budget 2020/21 submission calls for an expansion in the National Housing Finance and Investment Corporation (NHFIC)’s mandate and for targeting the First Home Buyer Deposit Scheme at new homes going forward.

"Such actions would increase the annual volume of new home building and enhance the likelihood of matching housing demand,” said Mr Garrett.

“Accelerating the roll out of previously committed infrastructure projects will also help unlock new housing supply in affected areas and enhance the viability of potential new home building initiatives."

You can read more of the industry report here

Similar to this:

Housing market warms up but home building still cooling, says HIA

Surprise increase in new build homes but we aren’t out of the woods yet

Housing finance tumbles again, building industry calls for government to act