Housing construction boom on borrowed time

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By Leith van Onselen

Several analysts have come forward arguing that Australia’s dwelling construction boom is on borrowed time and will likely peak over the next 12 months.

Key amongst these is the Housing Industry Association, which has released forecasts predicting that dwelling commencements will peak this year at 205,490 before dropping by 10.6% next year, pulled down by supply constraints such as a lack of land and planning delays (see next chart).

ScreenHunter_7370 May. 21 08.22

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.