With the ABS release dwelling approvals data for June, and dwelling commencement and completions data earlier this month, it’s an opportune time to examine how dwelling construction is tracking against population growth at the state level.
First, the national picture shows that dwelling construction has risen to record levels as population growth is falling:
However, unlike prior “booms”, the current episode is concentrated in units and apartments:
Next, New South Wales, where after a decade of sluggish construction, construction levels have jumped as population growth has begun to fade:
Again, units and apartments are dominating:
Victoria is the clear leader, with dwelling construction at unprecedented levels just as population growth has started to fall:
Recently, however, units and apartments have become the predominant segment of construction:
Queensland’s dwelling construction has also picked up just as population growth has plummeted:
Again, like the other major states, it has been driven primarily by rising unit and apartment construction:
Western Australia is the most worrying of all, with dwelling construction rocketing just as population growth has crashed:
However, although unit and apartment construction has increased in Western Australia, it remains the small minority:
Finally, South Australian dwelling construction is relatively subdued, but so is population growth:
Detached houses remain the dominant segment in South Australia:
