Queensland is falling behind in the race to build new homes in a further sign that there is no relief in sight for the state’s crippling housing and construction crisis, with industry commentators fearing it will get worse before it gets better.
In 2021-2022, strong migration saw 40,000 new households looking for a home to call their own in Queensland. In contrast, only 34,775 new homes were built.
In the latest CommSec State of the States report, while Queensland is in top spot with better-than-average growth in five of the eight economic indicators, it languishes in three important indicators – the ones that really matter to the building industry and the housing crisis – construction work, housing finance and dwelling starts.
The latest building approval data for November 2022 also shows the downtrend accelerating, with dwelling approvals dropping over the quarter by 14.3 per cent. Approvals for both detached houses and units are also heading down with drops of 8.3 per cent and 24.3 per cent respectively.
Construction cost data released by the ABS last week also shows costs are still rising, with the cost to build a home in Queensland increasing by 18 per cent over the last 12 months and an eye watering 42 per cent over the past three years.
The Queensland government’s own capital expenditure on housing is being impacted, decreasing from the previous financial year according to a recent Productivity Commission report.
Master Builders CEO Paul Bidwell says interest rate hikes, supply chain challenges, a lack of building contractors licensed to work in Queensland and a continued flood of new regulation are to blame and together they are serving to tie up the construction of new homes.
“Finding our way through the housing crisis is going to be extremely challenging – it will take a concerted effort from government to tackle blockages in housing supply. But in the end, it’s a no brainer: we must address the cost and complexity of building a new home,” Mr Bidwell said.
“We’ve proposed agenda items for the government’s next Housing Roundtable that outlines how the government must look at its own regulation as a starting point. The reality is, they are presently leaving builders to work with one arm tied behind their back.
“We’re fighting for a delay to the National Construction Code changes, no further roll out of project trust accounts, simplifying the Minimum Financial Requirements (MFRs), streamlining of licensing approvals and a statewide Housing Code.
“New regulation is adding more and more cost to building Queensland homes without an equal benefit justifying the cost imposed.
“If the government is committed to fixing the housing crisis, they must also commit to doing what they can to drive down the cost of new housing.”
Across the State
It’s the same story across most of the state. Although, there is a bright spark in the Brisbane area with approvals for units on the up and Wide Bay which is still increasing the approvals of new houses.
Source: Master Builders Qld, 31 January 2023, https://www.mbqld.com.au/news-and-publications/media/queensland-falls-behind-in-race-to-build-new-homes