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  • Demand for housing has remained strong, which HIA’s Tim Reardon suggests suggests the housing construction boom will continue through 2022
  • “There has been a clear shift towards lower density housing during the pandemic and this trend does not appear to show signs of slowing down,” Mr Reardon said.
  • The industry will continue to operate at full capacity until 2022, limited only by the availability of land, labor and supplies, the report says.
  • The impact of the loss of migration has yet to fully impact housing demand and a rise in interest rates will mark the end of this COVID construction boom, Mr Reardon said.

The Housing Industry Association (HIA) predicts that the current housing construction boom will cast a shadow through 2022.

“Demand for new single and multi-unit housing has remained strong, suggesting that the current homebuilding boom will continue through 2022,” HIA Chief Economist Tim Reardon said. .

HIA today released its Economic and Industrial Outlook Report for Australia, which forecasts new construction and home renovation activity for Australia and each of the eight states and territories.

“Demand for new build single-detached homes has remained strong due to the economic lockdowns,” Mr Reardon added.

“There has been a clear shift towards low density housing during the pandemic and this trend does not appear to show signs of slowing down. This change is not just about people living in units moving to single-family homes, but includes a shift to fewer people per household. As a result, we have seen a significant change in the volume, type and location of new homes. »

Demand for new single-family homes remains robust, based on key signs of demand.

“Sales since HomeBuilder ended (April 2021 – October 2021) are the strongest since 2017, when more than 115,000 single-detached homes began construction,” Reardon said.

“This high level of homebuilding activity suggests that the current residential construction boom will continue through 2022.”

The impact of the loss of migration has yet to be fully reflected in demand for individual housing, and a rise in interest rates will signal the end of the current COVID construction boom, according to Mr Reardon.

Mr Reardon said the move to lower density is also the likely driver of recent demand for multi-units.

“Approvals for multi-units were 34.3% higher in the September 2021 quarter than in the same quarter a year earlier,” he said.

“This is driven by both medium density housing and high rise apartments. Investors are looking through the haze of the pandemic for better prospects on the other side. Affordability constraints are also pushing households, especially first-time home buyers, back to townhouses and apartments.

The industry will continue to operate at full capacity until 2022, limited only by the availability of land, labor and supplies, according to the report.

“The COVID pandemic has had a material impact on key drivers of housing demand, including housing density, location and type,” he said.

“The COVID pandemic is expected to see fewer homes built in Sydney and Melbourne over the decade than previously anticipated. All other regions benefit from this change in housing location.

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