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I reported last week how the homebuilding industry is facing a raft of headwinds that will inevitably slow the construction of new homes and further imperil the government’s housing targets.
Australian housing construction is tracking 27% below target
The latest Statement of Monetary Policy (SoMP) from the Reserve Bank of Australia (RBA) warned that the recent house price correction, coupled with the federal budget’s investor tax changes, elevated interest rates, and rising construction costs, will hamper new home construction, limiting supply.
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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.
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