Master Builders Australia reported that in the year leading up to February 2024, a total of 163,100 new homes received approval across Australia, marking the lowest rate in 11 years. Despite a high demand for housing, the approval rate has dropped significantly, adding strain to the housing market.
Data from the Australian Bureau of Statistics (ABS) indicated that dwelling approvals decreased by 1.9 percent in February 2024, following declines of 1 percent in January and 9.5 percent in December 2023. This decline was primarily driven by a notable fall in approvals for private sector dwellings.
According to ABS head of construction statistics Daniel Rossi, “Approvals for private sector dwellings excluding houses fell 24.9 percent in February, driven by a decrease in the number of approved large apartment projects. On the other hand, approvals for private houses saw a 10.7 percent increase in February.”
Master Builders Australia, a leading industry body, expressed concerns that the low housing approval rate would hinder the government from reaching its housing target. Chief economist Shane Garrett highlighted, “Over the year to February, only 163,100 new homes were approved in Australia—the lowest in 11 years. This is a significant contrast to the annual target of 240,000 new homes set under the National Housing Accord.”
CEO Denita Wawn echoed these concerns, emphasizing the urgency for policymakers to address the mismatch between housing supply and demand. She stressed the need for targeted measures to unlock housing supply and improve affordability.
Chief economist Peter Tulip attributed the low housing approval rate to high interest rates and escalating input costs, leading to developers facing financial constraints and delays in projects. He suggested that state governments should intervene to streamline approval processes and encourage more building developments.
In conclusion, the housing market in Australia is facing challenges due to the declining approval rates, highlighting the need for coordinated efforts to address supply constraints and enhance affordability for residents. Please rephrase this.
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