The Housing Industry Association (HIA) has updated its housing construction forecasts and believes the market will experience an orderly correction following the HomeBuilder stimulus:
“The volume of detached home building and renovations activity has been exceptionally strong for the past 18 months. This was initially driven by HomeBuilder and is now being supported by strong employment conditions, low interest rates and accelerated household formation,” stated HIA Chief Economist, Tim Reardon.
“This has driven a ‘super cycle’ of housing activity across Australia that will ensure that the industry continues to operate at capacity through 2022. Detached home building activity remains well above historical peaks.
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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.
