News
12 June, 2025
Urgency to build grows ever stronger
AUSTRALIA’S efforts to tackle the housing crisis have suffered a setback, with 2024 recording the weakest year for higher-density home starts since 2011. Australian Bureau of Statistics data reveals overall home building activity ended the year on a weak note, with new starts falling 4.4 per cent in the December quarter.
Detached house starts declined by 6 per cent, while higher-density starts slumped 7.6 per cent.
Master Builders Australia chief economist Shane Garrett said the lack of activity in the higher-density segment was impeding rental affordability and broader housing targets.
“Higher density home building has been stuck at a low ebb for years, and the insufficient output of new stock here is a major culprit when it comes to deteriorating affordability in the rental market,” Mr Garrett said.
“The performance of higher density home building will be pivotal in determining whether or not we meet our Housing Accord targets.
“Today’s figures show that the struggle has got even tougher on this front.”
Renovation activity provided one of the few bright spots, rising 1.5 per cent in the December quarter and up 4.3 per cent year-on-year.
“This could be a sign that people are opting to renovate over building a new home,” Mr Garrett said.
Total new home starts rose modestly by 2.2 per cent to 168,300 in 2024, driven by a 7.6 per cent increase in detached houses.
Higher-density starts, however, fell 5.4 per cent over the year.
Master Builders CEO Denita Wawn added that Australians continue to do it tough.
“Housing remains the single biggest pressure point for families across the country.
