There is a huge amount of building activity going on right now. ’Work done’ estimated by the ABS is near record levels. How come I still can’t find a house to rent?
The ABS National Accounts for the growth in dwelling stock (excluding changes in prices), shows there is no housing boom. In fact in 2022, growth in housing stock was only 1.6%, compared to 3.5% during the last big housing boom in 2004.
Part of the story is the Australian government’s response to the pandemic, HomeBuilder grants gave up to $25,000 for people to undertake renovations not just to build new homes. The long term problem is land is just harder to find so people seeking to build new homes are knocking down existing homes.
The number of rebuilds were at a record in 2021 with 25,000 demolitions compared to 21,000 in the year 2020 and 19,000 in 2019.
Rebuilding homes after damage from bushfires in 2020 and floods in 2021 and again in 2022 have also contributed to construction which hasn’t added to the housing stock.
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