Is the dwelling construction cycle peaking?

By Leith van Onselen

Yesterday’s housing finance data for April registered a much needed rebound in buyer demand for newly constructed dwellings following a period of weakness, with the number of commitments for construction and new dwellings rising a combined 3.5% in April and by 1.4% over the year (see next chart).

The boom in new housing commitments looked to have peaked in November 2014, but after April’s rebound there are hopes that it may re-establish another uptrend (see next chart).

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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.