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<\/p>\nThis year is shaping up to be a boom year for housing construction with 130,000 new detached homes to commence in 2021 according to the most recent forecast contained in HIA\u2019s economic and industry Outlook Report.
\nHIA\u2019s chief economist Tim Reardon said the 130,000 new homes forecast in 2021 surpassed the previous record of 120,000 starts in a calendar year which was set in 2018.
\n\u201cWe can clearly see that HomeBuilder has delivered, all leading indicators show a record volume of detached homes about to commence construction and this is occurring in almost every location across Australia,\u201d Mr Reardon said.
\n\u201cThis has not only secured the employment of the 500,000 people employed in detached home construction, but it will also absorb tens of thousands of workers from across the rest of the economy.\u201d
\nThe report has highlighted that it is the regions which have shone through with the Warrnambool region seeing a 47 per cent increase in starts, Ballarat 28 per cent and Geelong a 12 per cent increase in starts.
\n\u201cRegional locations in many states are showing a larger increase in activity than capital cities as the population moves away from inner city living,\u201d Mr Reardon said.
\nVillawood Executive Director Roy Costelloe said these numbers are good for the industry and keeping everyone buoyant.
\n\u201cThe thing about land sales is that it\u2019s the start of the food chain,\u201d Mr Costelloe said.
\n\u201cWe make sales, build the blocks of land and in the next nine to 12 months the house building starts.
\n\u201cAll the starts made in 2021 will reflect sales the year before, the 2021 land sales will be reflected in the builds that start in 2022.
\n\u201cWe\u2019re very grateful, without the first home buyer grants and HomeBuilder, we\u2019d have been in trouble if there was a construction lockdown.
\n\u201cThat would have caused the economy to collapse, instead, these incentives have given buyers confidence and the economy is going quite well, although we are very sorry for hospitality workers.
\n\u201cThe thing is, we don\u2019t want sales to go at frenzied pace, it\u2019s better to go at a consistent level,\u201d Mr Costelloe concluded.
\nMr Reardon said the extension of HomeBuilder in November is the primary cause of this significant upgrade in their forecast, but there are also demographic shifts driving demand for detached homes.
\n\u201cThe strong conditions for detached homes are in stark contrast to the outlook for multi-units, which will continue to cool,\u201d he said.
\n\u201cThe loss of overseas migration hit the multi-unit sector immediately and the number of new unit starts is falling rapidly.
\n\u201cThe constraint on building more than 130,000 detached homes this year will be the availability of residential land.
\n\u201cLand development slowed in 2020 when the restrictions were introduced and will limit the number of homes that start construction this year.\u201d
\nThe report also showed detached starts in Victoria increased by 8.7 per cent to 10,138 in the September 2020 quarter, up from the 9,324 recorded in the June 2020 quarter.<\/p>\n
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This year is shaping up to be a boom year for housing construction with 130,000 new detached homes to commence in 2021 according to the most recent forecast contained in HIA\u2019s economic and industry Outlook Report. HIA\u2019s chief economist Tim Reardon said the 130,000 new homes forecast in 2021 surpassed the previous record of 120,000 […]<\/p>\n