Dwelling construction is topping-out

Monday, 13 July 2015

Friday’s housing finance data for May showed clear signs that the dwelling construction cycle is approaching its peak, with the number of commitments for construction and new dwellings slumping by a combined 5.6% in May to be down by 5.7% over the year (see next chart).

Looking at the rolling annual figures, the boom in new housing commitments peaked in November 2014, and is clearly now in a downtrend (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.