Construction sector faces critical supply squeeze

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The Morrison Government’s HomeBuilder subsidy, alongside similar state government programs, have been too much of a success in stimulating the construction industry.

As illustrated in the next chart, loans for dwelling construction have soared to unprecedented highs:

Australian dwelling construction finance

Loans for dwelling construction are nearly triple their pre-COVID level.

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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.