New data from the Australian Bureau of Statistics suggests that the Federal Government's 2020 HomeBuilder scheme helped to super charge demand for the construction sector, at a time when demand was already high with low interest rates.
This, along with material and skills shortages, has helped to drive up construction costs, and ABS data shows that the time to complete houses has blown out. At the same time, many construction businesses have gone bust, leaving consumers with half-finished homes.
As new Federal Government initiatives seek to increase the stock of housing nationally, have we learnt from past mistakes? And do we need more consumer protections against construction insolvencies?
Guests:
Eliza Owen, head of residential research at CoreLogic Australia, which is a provider of property data, information, analytics and services
Geoff Hanmer, Adjunct Professor of Architecture at UTS and director of an architectural consultancy
Dr Bradley Hastings, research associate with the UNSW Business School
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According to ABS data, the average time taken to build new homes has increased by 50% over the past five years, with average build times increasing from 6 months in September 2019 to 9 months in June 2024.