Housing starts hit record numbers in June quarter

Housing-starts-have-gone-up-16-per-cent-over-the-year_157_86268_0_14101382_300The period from June to August was something of a bumper quarter for dwelling starts, with 47,558 starts recorded – a 16 per cent year-on-year increase.

This brings the total number of dwelling starts over the year to 181,904, surpassing the 180,000 mark that experts have been touting as the minimum yearly target needed to house Australia’s growing population.

“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,” commented Housing Industry Association (HIA) Senior Economist Shane Garrett in an October 15 release.

Mr Garrett also noted that this was a 20-year high in terms of new home building – the highest yearly total since March 1995 – which he called “very welcome”.

Industry insiders such as Mr Garrett gave varying targets for new ┬áhome building in the years ahead. Mr Garrett said around 186,000 dwellings would be necessary between now and 2050, while Nick Proud, executive director of the Residential Development Council cited an excess of 175,000 home starts for “future successive years”, according to an October 15 release.

This comes on top of the fantastic results for new home lending during August.

“Excluding the GFC-stimulus period of late 2009, the numbers we have seen over the June-August period this year are the highest since the building boom of 1994,” HIA Chief Economist Harley Dale said in an October 13 release.

Mr Dale stressed the importance of ensuring positive news such as this wasn’t buried under negative prognostications by more pessimistic observers.

With a further flood of housing supply coming in to Australia, buyers may be in a better position. Larger volumes of housing stock has the potential to raise affordability levels, not to mention give buyers greater options.

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