Residential building to fall back

“New residential building will slow for the next two years to bottom out at what will still be a historically healthy level of activity” the Housing Industry Association said.

HIA Acting Chief Economist Warwick Temby said HIA is forecasting a measured return to more normal levels of home building activity over the next couple of years.

“The recent peak in new home building was unprecedented: an all-time record 229,823 new residential dwellings started building in 2015/16. This record level of building has made a major contribution to Australia’s economic growth and eased the under-supply of housing.

“The forecast falls in new activity will not be uniform across the country; Western Australia and South Australia started their down-cycle well in advance of other states,” Mr Temby said.