2022 will usher a tsunami of housing supply

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Yesterday, the Australian Bureau of Statistics (ABS) released dwelling construction data for the September quarter, which showed that annual detached house commencements hit their highest level on record, with total commencements just below record highs:

By contrast, actual dwelling completions remained depressed, suggesting the supply pipeline is chock full:

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The below charts plot annual dwelling approvals, commencements and completions against population growth nationally and across the five major states, and give us a clearer picture on the structural supply situation facing the nation.

National:

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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.