New home building worst in years
Residential building activity ended 2010 on a very soft note and the outlook for 2011 is even worse according to the Housing Industry Association.
ABS figures released yesterday showed that residential building activity fell 0.7 per cent in the December 2010 quarter and seven per cent year on year.
HIA economist Harley Dale said the weak data would continue well into 2011.
“In 2011 we look set to experience one of the weakest years for new home starts since the mid-1990s,” he said.
The Housing Industry Association is calling on the federal government to boost new housing activity in a bid to alleviate the nation’s housing shortage.
“The federal government needs to act urgently to introduce short term stimulus measures to boost new housing activity and turnaround a housing slump that is shutting out first home buyers and aggravating financial stress felt by lower income rental households.”
In the December 2010 quarter, seasonally adjusted new residential work done fell by 2.3 per cent in New South Wales, 4.8 per cent in Queensland, 5.8 per cent in Tasmania, 0.4 per cent in the Northern Territory, and 10.4 per cent in the ACT.