Thursday’s lending indicators data from the Australian Bureau of Statistics (ABS) revealed that loans for new home construction hit the six consecutive monthly record high in February 2021, surging 166% year-on-year:
As noted by HIA Chief Economist, Tim Reardon:
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“The number of construction loans to owner occupiers in the three months to February 2021 is 43.0 per cent higher than the previous quarter and is two-and-a-half times higher than the same time last year”.
Lending for renovations also hit their highest level since 2009, up 53% year-on-year in February:
The big surge in demand for new homes and renovations is having a dramatic impact on Australia’s tradies, with job vacancies across the construction industry hitting a record high 26,700 over the February quarter, according to the ABS:
The tourism industry’s loss from closed borders is clearly the construction industry’s gain, given Australians are spending their immense savings at home (literally), assisted by the federal government’s HomeBuilder stimulus.