Australia Macro Updates

The One Stop Portal for Australia Macroeconomic Data. Simplified and Summarized!

We simplify and summarize key data so that you don’t have to spend hours reading confusing and long media releases. Read key economic releases and major events here in under 2 minutes. And we will explain the key takeaway for you. Stay informed and form a robust view on macroeconomic matters to aid your successful investment decisions

30th Jul 2026

Building Approvals, Australia

Key takeaway: The ABS Building Approvals release for June 2026, published on July 30, delivered the strongest monthly headline in over a year and rounded off the best financial year for dwelling approvals since 2020-21 — though the composition of the gain and an important caveat around building values add nuance to what is otherwise a constructive read. Total dwellings approved rose 7.2% in seasonally adjusted terms to 18,328 — the highest monthly total in more than a year — driven by a 17.8% rebound in private dwellings excluding houses to 7,138, partly recovering May’s 11.0% fall, while private sector house approvals edged up 0.4% to 10,631, marking a sixth consecutive month above 10,000 and sitting 15.8% above a year ago. In original terms, the full 2025-26 financial year produced 205,249 dwellings approved — a 9.2% increase on 2024-25 and the highest annual total since 2020-21, with private sector houses at their highest since 2021-22 and multi-unit approvals at their best since 2017-18. Regionally, Queensland rose 33.4%, New South Wales 13.2%, and Western Australia 10.7%, while Victoria fell 13.9%, South Australia 11.5%, and Tasmania 22.5%. On values, the picture was more mixed: total building value fell 5.5% to $20.00 billion after May’s record high, with non-residential building collapsing 24.7% to $8.26 billion following the data-centre-driven surge last month, while residential building value rose 15.1% to $11.75 billion and the average value of a new private sector house approval hit $529,790 — up 5.1% year-on-year. The critical tension in the June data remains the same as in prior months — approvals are at their highest pace since the post-COVID boom, but with the March quarter showing housing starts fell 11.2% despite healthy approvals, the pipeline is clearly not converting to actual construction at a rate consistent with the government’s Housing Accord targets, and with the cash rate still at 4.35% and construction cost inflation running above 5%, that gap is unlikely to close quickly.

1st Jul 2026

Key takeaway: Australia’s Building Approvals data for May 2026, released by the ABS, showed total dwelling approvals fell 1.1% to 17,019 in seasonally adjusted terms. Private sector house approvals rose 2.8% to 10,537, their highest level since September 2021, while private sector dwellings excluding houses (apartments, townhouses) fell sharply, down 10.4% to 6,034. The value of total residential building fell 5.7% to $10.24 billion, but this was more than offset by non-residential building, where value surged 41.0% to a record $10.83 billion, driven by large data centre approvals in New South Wales and Victoria. State results were mixed: Queensland (-8.8%), Victoria (-3.0%) and Western Australia (-1.3%) declined, while South Australia (+10.9%), Tasmania (+4.8%) and New South Wales (+2.2%) rose.

2nd Jun 2026

Key takeaway: The ABS Building Approvals release for April 2026, published on June 2, showed a headline dip that masked a broadly constructive underlying picture for Australia’s housing pipeline. Total dwellings approved fell 3.4% in seasonally adjusted terms to 16,710 in April, driven by a 3.6% decline in private dwellings excluding houses after that category had already collapsed 25.7% in March, while private sector house approvals slipped just 1.0% to 10,088. Critically, April marked the third consecutive month with over 10,000 private sector houses approved — a run last seen in the final three months of 2021 — pointing to genuine underlying resilience in detached housing demand. The HIA’s Tom Devitt noted that the three months to April were still 12.1% above the same quarter a year earlier, with houses up 9.3% and multi-units up 16.0%, framing the monthly decline as noise rather than a reversal of trend. On the value side, total building approvals rose 10.2% to $18.64 billion, driven by a 29.4% surge in non-residential building to $7.75 billion, which more than offset the 0.3% dip in residential building value to $10.89 billion. Regionally, the picture was mixed, with New South Wales down 9.5%, Western Australia down 7.4%, and Victoria down 3.9%, while Tasmania, South Australia, and Queensland all recorded gains — reinforcing the divergence between the resource and infrastructure-driven states and a softening east coast market still adjusting to higher borrowing costs. 

4th May 2026
Key takeaway: The ABS Building Approvals for March 2026, released on May 4, showed a sharp pullback following February’s exceptional surge. Total dwellings approved fell 10.5% to 17,300 on a seasonally adjusted basis, driven by a 26.0% drop in private dwellings excluding houses — which followed a 101.1% surge in February — while private sector house approvals edged up 0.9% to 10,194 dwellings, their highest level since November 2021. The value of total building approved fell 19.4% to $16.74 billion, coming off a record high in February, with total residential building value down 15.8% and non-residential building down 25.3%. Geographically, the result was mixed: Victoria (-16.9%), Western Australia (-15.5%), Queensland (-6.4%) and South Australia (-2.1%) all fell, while New South Wales (+3.2%) was the standout performer, recording its highest level of private sector house approvals since August 2022. Looking at the bigger picture, the annualised trend offers more comfort — approvals for the 12 months to March 2026 are tracking close to 200,000 dwellings per annum, consistent with the government’s housing targets. However, Oxford Economics Australia cautioned that the Middle East conflict is already placing upward pressure on construction costs, and with further RBA rate hikes expected, these headwinds are likely to temper the pace of approvals growth, though the full drag may not materialise until 2027. 

1st Apr 2026

Key takeaway: Australia’s building approvals data for February 2026, released by the Australian Bureau of Statistics on April 1, delivered a striking rebound. The total number of dwellings approved surged 29.7% in February to 19,022 on a seasonally adjusted basis, with the ABS head of construction statistics noting that the rise was driven by a 101.2% jump in private dwellings excluding houses — following a 25.0% fall in January and a 29.7% fall in December. The result brought approvals to a near five-year high, well ahead of the market forecast of 5.8%, and reversed the 7.2% decline recorded in the prior month. On an annual basis, dwelling approvals expanded 14.0%, reversing January’s 1.5% annual drop. The gains were geographically broad, with Victoria (+85.1%), Queensland (+14.7%), South Australia (+12.3%), New South Wales (+10.1%), and Western Australia (+3.1%) all rising, while Tasmania fell 27.7%. Private sector houses, the less volatile component, were more subdued, rising just 0.2%. The value of total building approved also rose 14.4% in February to $20.43 billion. The government welcomed the data, with Treasury ministers describing approvals hitting a four-year high as “great progress” in addressing a housing crisis that has been generations in the making, though the volatile nature of the non-house approvals category means the sustainability of this rebound will need to be confirmed in subsequent months. 

3rd Mar 2026

Key takeaway: Total dwellings approved decreased by a substantial 7.2% m-o-m to 14,564 units for the month of January 2026. The yearly change stands at -15%. Monthly prints of Building Approvals are notoriously volatile. Building approvals had surged 15% in November and have now fallen for 2 consecutive months in December and January. A similar volatile trend was observed through most of 2025. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 18 months. Even though building approvals continue to trend upwards, the housing market in Australia remains under pressure from issues of rising construction costs and unaffordability. The RBA has, against global central banking trends, increased the cash rate from 3.6% to 3.85% at its latest meeting in February. Monthly inflation prints have been higher than consensus expectations in recent months and the overall economic growth numbers have also been coming in strong. However, increase in interest rates will hurt the housing sector and mortgage borrowers, especially given that the supply of houses has not expanded substantially in Australia. 

3rd Feb 2026

Key takeaway: Total dwellings approved decreased by a substantial 14.9% m-o-m to 15,542 units for the month of December 2025. The yearly change stands at 0.4%. Monthly prints of Building Approvals are notoriously volatile. Building approvals had surged 15% in November and have fallen 15% in December. A similar volatile trend was observed through most of 2025. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 9-12 months. Even though building approvals continue to trend upwards, the housing market in Australia remains under pressure from issues of rising construction costs and unaffordability. The RBA has, against global central banking trends, increased the cash rate from 3.6% to 3.85% at its latest meeting in February. Monthly inflation prints have been higher than consensus expectations in recent months and the overall economic growth numbers have also been coming in strong. However, increase in interest rates will hurt the housing sector and mortgage borrowers, especially given that the supply of houses has not expanded substantially in Australia.    

7th Jan 2026

Key takeaway: Total dwellings approved increased by a substantial 15.2% m-o-m to 18,406 units for the month of November 2025. The yearly change stands at 20%. Monthly prints of Building Approvals are notoriously volatile. Building approvals had surged 12% in June. Approvals then fell for two months in a row in July and August, then surged back up again in September and fell sharply in October. The latest print shows a large rise again in November. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 9-12 months. Even though building approvals continue to trend upwards, the housing market in Australia remains under pressure from issues of rising construction costs and unaffordability. The RBA has held steady since cutting the cash rate from 3.85% to 3.6% in August. Monthly inflation prints have been higher than consensus expectations in recent months and the overall economic growth numbers have also been coming in strong.   

1st Dec 2025

Key takeaway: Total dwellings approved decreased by a substantial 6.4% m-o-m to 15,832 units for the month of October 2025. The yearly change stands at -1.8%. Monthly prints of Building Approvals are notoriously volatile. Building approvals had surged 12% in June. Approvals then fell for two months in a row in July and August, then surged back up again in September and fell sharply in October. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 9-12 months. Even though building approvals continue to trend upwards, the housing market in Australia remains under pressure from issues of rising construction costs and unaffordability. The RBA has held steady since cutting the cash rate from 3.85% to 3.6% in August, but has held steady since then. Monthly inflation prints have been higher than consensus expectations in recent months and the overall economic growth numbers have also been coming in strong. Any slowdown in building approvals will be a point of concern due to the unaffordability issues and due to strong demand from higher immigration.  

3rd Nov 2025

Key takeaway: Total dwellings approved increased by a substantial 12.0% m-o-m to 17,019 units for the month of September 2025. The yearly change stands at +15.3%. Monthly prints of Building Approvals are notoriously volatile. Building approvals had surged 12% in June. Approvals then fell for two months in a row in July and August and have surged back up again in September. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 9-12 months. Even though building approvals continue to trend upwards, the housing market in Australia remains under pressure from issues of rising construction costs and unaffordability. The RBA has held steady since cutting the cash rate from 3.85% to 3.6% in August. Market participants expect the RBA to hold rates at its meeting this week as well.  

30th Sep 2025

Key takeaway: Total dwellings approved decreased by a substantial 6.0% m-o-m to 14,744 units for the month of August 2025. The yearly change stands at +3.0%. Monthly prints of Building Approvals are notoriously volatile. Building approvals had surged 12% in June and had fallen 8% in July. However, the latest release makes it two months in a row of sharp falls in building approvals. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 6-9 months. The last 2 weak prints are hence a cause of concern. With inflation coming in softer in the most recent releases, the RBA cut the cash rate from 3.85% to 3.6% in August. However, since then the Governor of the RBA has commented that the risks to the upside on inflation are still noteworthy and that economic data has been relatively strong in recent months. Given this backdrop, the RBA chose to keep rates unchanged at its September meeting. It is also to be noted that Building construction in Australia continues to be far below the quantum required to meet demand. The figures also continues to fall short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. Market participants are mostly expecting a more meaningful increase in supply in 2026 when mortgage rate cuts will aid the release of pent up housing demand.    

1st Sep 2025

Key takeaway: Total dwellings approved decreased by a substantial 8.2% m-o-m to 15,769 units for the month of July 2025. The yearly change stands at +6.6%. Monthly prints of Building Approvals are notoriously volatile. Building approvals had surged 12% last month and have fallen 8% this month of July. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 6-9 months. On the other hand, building approvals data has generally been a bit weaker since the start of 2025. That also coincides with weaker private capital expenditure in the last quarter of 2024 and the first quarter of 2025. With inflation coming in softer in the most recent releases, the RBA cut the cash rate from 3.85% to 3.6% in August. It is also to be noted that Building construction in Australia continues to be far below the quantum required to meet demand. The figures also continues to fall short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. Market participants are mostly expecting a more meaningful increase in supply in 2026 when mortgage rate cuts will aid the release of pent up housing demand.    

31st Jul 2025

Key takeaway: Total dwellings approved increased by a substantial 11.9% m-o-m to 17,076 units for the month of June 2025. The yearly change stands at +27%. Monthly prints of Building Approvals are notoriously volatile. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. The latest print is hence an exception to the normal range we have seen in recent times. The trend line has been showing a slight increase in approvals over the past 6-9 months. However, building approvals data has generally been a bit weaker since the start of 2025. That also coincides with weaker private capital expenditure in the last quarter of 2024 and the first quarter of 2025. Also, the sharp rise this month has mostly been in the more volatile multi family housing segment. The single homes segment actually witnessed a m-o-m drop of 2% in June. Yet, the data point is positive nonetheless. With inflation coming in softer in the most recent releases, participants are expecting the RBA to cut rates at it next meeting in August. It is also to be noted that Building construction in Australia continues to be far below the quantum required to meet demand. The figures also continues to fall short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. Market participants are mostly expecting a more meaningful increase in supply in 2026 when mortgage rate cuts will aid the release of pent up housing demand.    

2nd Jul 2025

Key takeaway: Total dwellings approved increased by 3.2% m-o-m to 15,212 units for the month of May 2025. The yearly change stands at +6.5%. Monthly prints of Building Approvals are notoriously volatile. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. The trend line has been showing a slight increase in approvals over the past 6-9 months. However, building approvals data has generally been a bit weaker since the start of 2025. That also coincides with weaker private capital expenditure in the last quarter of 2024 and the first quarter of 2025. Also, building construction in Australia continues to be far below the quantum required to meet demand. The figures also continues to fall short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. Market participants are mostly expecting a more meaningful increase in supply in 2026 when mortgage rate cuts will aid the release of pent up housing demand.    

30th May 2025

Key takeaway: Total dwellings approved decreased sharply by 5.7% m-o-m to 14,633 units for the month of April 2025. The yearly change stands at +7.6%. Monthly prints of Building Approvals are notoriously volatile. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. The trend line has been showing a slight increase in approvals over the past 6-9 months. However, building approvals data has generally been a bit weaker since the start of 2025. That also coincides with weaker private capital expenditure in the last quarter of 2024 and the first quarter of 2025. Also, building construction in Australia continues to be far below the quantum required to meet demand. The figures also continues to fall short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. Market participants are mostly expecting a more meaningful increase in supply in 2026 when mortgage rate cuts will aid the release of pent up housing demand.    

7th May 2025

Key takeaway: Total dwellings approved decreased sharply by 8.8% m-o-m to 15,220 units for the month of March 2025. The yearly change stands at +13.4%. Monthly prints of Building Approvals are notoriously volatile. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 6-9 months. After the past couple of months of decent m-o-m figures, a pull back this month was expected. However, the quantum of decline was sharper than expected. Building construction in Australia continues to be far below the quantum required to meet demand. The figures also continues to fall short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. Market participants are mostly expecting a more meaningful increase in supply in 2026 when mortgage rate cuts will aid the release of pent up housing demand.    

2nd Apr 2025

Key takeaway: Total dwellings approved decreased slightly by 0.3% m-o-m to 16,606 units for the month of February 2025. The yearly change stands at +25.7%. Monthly prints of Building Approvals are notoriously volatile. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 6-9 months. The previous month of January had recorded a strong print of +6.3%. A slight pull back in February was hence mostly anticipated. Yet the decline of 0.3% outperformed consensus expectations of a declined of 1.4%. Nonetheless, building construction in Australia continues to be far below the quantum required to meet demand. The figures also continues to fall short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. Market participants are mostly expecting a more meaningful increase in supply in 2026 when mortgage rate cuts will aid the release of pent up housing demand.    

6th Mar 2025

Key takeaway: Total dwellings approved increased sharply by 6.3% m-o-m to 16,579 units for the month of January 2025. The yearly change stands at +21.7%. Monthly prints of Building Approvals are notoriously volatile. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 6-9 months. That trend continued with a strong print to start the year in January. Yet, building construction in Australia continues to be far below the quantum required to meet demand. The figures also fall significantly short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. Market participants are mostly expecting a more meaningful increase in supply in 2026 when mortgage rate cuts will aid the release of pent up housing demand.    

3rd Feb 2025

Key takeaway: Total dwellings approved increased 0.7% m-o-m to 15,174 units for the month of December 2024. The yearly change stands at +12.2%. Monthly prints of Building Approvals are notoriously volatile. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 6-9 months. The key point remains that building construction in Australia continues to be far below the quantum required to meet demand. The figures also fall significantly short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. The latest increase in the month of December is seen as a reversal of the sharp decline in the previous month of November. At the same time, it is also worth noting that the number was lower than consensus expectations of an increase of 0.9%. Market participants are mostly expecting a more meaningful increase in supply in 2026 when mortgage rate cuts will aid the release of pent up housing demand.    

7th Jan 2025

Key takeaway: Total dwellings approved decreased 3.6% m-o-m to 14,998 units for the month of November 2024. The yearly change stands at +3.2%. Monthly prints of Building Approvals are notoriously volatile. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 6-9 months. The key point remains that building construction in Australia continues to be far below the quantum required to meet demand. The figures also fall significantly short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. The latest monthly drop dents hopes of a big recovery in housing supply to meet surging demand due to continued immigration. Market participants are mostly expecting a more meaningful increase in supply in 2026 when mortgage rate cuts will aid the release of pent up housing demand.    

2nd Dec 2024

Key takeaway: Total dwellings approved increased 4.2% m-o-m to 15,498 units for the month of October 2024. The yearly change stands at 6.1%. Monthly prints of Building Approvals are notoriously volatile. Since mid 2022, dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 6-9 months. The key point remains that building construction in Australia continues to be far below the quantum required to meet demand. The figures also fall significantly short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. Yet, the latest monthly release is a positive indicator for the housing market in Australia. The approval rate was the highest in the past 15 months signalling a turnaround in the new homes market.   

31st Oct 2024

Key takeaway: Total dwellings approved increased 4.4% m-o-m to 14,842 units for the month of September 2024. The yearly change stands at 6.8%. Monthly prints of Building Approvals are notoriously volatile. In the past few months dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. However, the trend line has been showing a slight increase in approvals over the past 4-6 months. The key point remains that building construction in Australia continues to be far below the quantum required to meet demand. The figures also fall significantly short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. Yet, the latest monthly release is a positive indicator for the housing market in Australia. The approval rate was the highest in the past 15 months signalling a turnaround in the new homes market.   

1st Oct 2024

Key takeaway: Total dwellings approved decreased 6.1% m-o-m to 13,991 units for the month of August 2024. The yearly change stands at 3.6%. Monthly prints of Building Approvals are notoriously volatile. However, in the past few months dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. The trend line has been showing a slight increase in approvals over the past 4-6 months. The key point remains that building construction in Australia continues to be far below the quantum required to meet demand. The figures also fall significantly short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month.   

2nd Sep 2024

Key takeaway: Total dwellings approved increased 10.4% m-o-m to 14,797 units for the month of July 2024. The yearly change stands at 14.3%. Monthly prints of Building Approvals are notoriously volatile. However, in the past few months dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. The trend line has been showing a slight increase in approvals over the past 4-6 months. The key point remains that building construction in Australia continues to be far below the quantum required to meet demand. The figures also fall significantly short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month.   

30th July

Key takeaway: Total dwellings approved decreased 6.5% m-o-m to 13,237 units for the month of June 2024. The yearly change stands at -3.7%. Monthly prints of Building Approvals are notoriously volatile. However, in the past few months dwelling approvals have mostly trended sideways around 12,500 to 15,000 approvals every month. The key point remains that building construction in Australia continues to be far below the quantum required to meet demand. The figures also fall significantly short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month.   

1st Jun 2024

Key takeaway: Total dwellings approved decreased 0.3% m-o-m to 13,078 units for the month of April 2024. The yearly change stands at +3.5%. While the latest month figures show a small drop from the previous month, it is also important to note that March figures were revised upwards from 12.94 units to 13.12 units. With this background, the fall of 0.3% in April does not look as bad. However, monthly prints of Building Approvals are notoriously volatile. Hence it is helpful to take a step back and look at the trend line and bigger picture. In summary, building construction in Australia remains far below the quantum required to meet demand. The figures also fall significantly short on delivering the government’s promise of building 1.2mn homes in 5 years – a rate of 240K units each year or 20K units each month. Economists also attribute net immigration to be a major cause for the demand supply mismatch with approximately 500K net migration in the 2022-23 period. For instance, numbers suggest only 174K dwelling were constructed in the 2022-23 period compared to the population increase of 626K in the same period. Home construction rates are almost 50% lower than their peak in March 2021.  

2nd May 2024

Key takeaway: Total dwellings approved increased 1.9% m-o-m to 12,947 units for the month of March 2024. The yearly change stands at -2.2%. Moreover, the February figure was also revised upwards from 12.52K units to 12.71K units. The big picture story has been one of continued housing shortage in Australia.  The Australian government targets to have approximately 240K units constructed every year for the next 5 years to achieve an additional 1.2mn units in order to bridge the demand supply gap. However, overall construction has generally fallen short of these targets resulting in a continued upswing in real estate prices. Economists also attribute net immigration to be a major cause for the demand supply mismatch with approximately 500K net migration in the 2022-23 period. For instance, numbers suggest only 174K dwelling were constructed in the 2022-23 period compared to the population increase of 626K in the same period. Home construction rates are almost 50% lower than their peak in March 2021. Even for March, even though dwelling approvals increased on a month on month basis, the number was lower than consensus expectations (+3.5%). 

4th Apr 2024

Key takeaway: Total dwellings approved fell 1.9% m-o-m to 12,520 units for the month of February 2024. The yearly change stands at -5.8%. Moreover, the January figure was also revised down from 12.85K units to 12.76K units. The big picture story has been one of continued housing shortage in Australia.  The Australian government targets to have approximately 240K units constructed every year for the next 5 years to achieve an additional 1.2mn units in order to bridge the demand supply gap. However, overall construction has generally fallen short of these targets resulting in a continued upswing in real estate prices. Economists also attribute net immigration to be a major cause for the demand supply mismatch with approximately 500K net migration in the 2022-23 period. For instance, numbers suggest only 174K dwelling were constructed in the 2022-23 period compared to the population increase of 626K in the same period.  Also another concerning point is that the trend in building approvals continues to be on a downward spiral. Home construction rates are almost 50% lower than their peak in March 2021. Even for February, consensus expectations were for an increase of 3.0% but the actual print was far lower. On an full year basis, in the 12 months to February 2024, just 163K units received sign off. This level is much lower than the 12 month rolling average of approximately 177K prior to the pandemic. 

4th Mar 2024

Key takeaway: Total dwellings approved fell 1.0% m-o-m to 12,850 units. The yearly change stands at +4%. Moreover, the December figure was also revised down from 13.1K units to 12.98K units. The big picture story has been one of continued housing shortage in Australia.  The Australian government targets to have approximately 240K units constructed every year for the next 5 years to achieve an additional 1.2mn units in order to bridge the demand supply gap. However, overall construction has generally fallen short of these targets resulting in a continued upswing in real estate prices. Economists also attribute net immigration to be a major cause for the demand supply mismatch with approximately 500K net migration in the 2022-23 period. For instance, numbers suggest only 174K dwelling were constructed in the 2022-23 period compared to the population increase of 626K in the same period.  

1st Feb 2024

Key takeaway: Total dwellings approved fell 9.5% m-o-m to 13,085 units. The yearly change stands at negative 12%. Moreover, the November figure was also revised down from 14,529 to 14,463. The big picture story has been one of continued housing shortage in Australia.  The Australian government targets to have approximately 240K units constructed every year for the next 5 years to achieve an additional 1.2mn units in order to bridge the demand supply gap. However, overall construction has generally fallen short of these targets resulting in a continued upswing in real estate prices. Economists also attribute net immigration to be a major cause for the demand supply mismatch with approximately 500K net migration in the 2022-23 period. For instance, numbers suggest only 174K dwelling were constructed in the 2022-23 period compared to the population increase of 626K in the same period.  

9th Jan 2024

Key takeaway: Total dwellings approved rose 1.6% m-o-m to 14,529 units. The yearly change stands at negative 4.6%. The big picture story has been one of continued housing shortage in Australia.  The Australian government targets to have approximately 240K units constructed every year for the next 5 years to achieve an additional 1.2mn units in order to bridge the demand supply gap. However, overall construction has generally fallen short of these targets resulting in a continued upswing in real estate prices. Economists also attribute net immigration to be a major cause for the demand supply mismatch with approximately 500K net migration in the 2022-23 period. For instance, numbers suggest only 174K dwelling were constructed in the 2022-23 period compared to the population increase of 626K in the same period.  

TBU

Australian Bureau of Statistics