by Sanjeev Sah | May 02, 2023 | Market Updates

New Australian Bureau of Statistics data shows building activity continues to fall, with the number of new homes started over the December quarter dropping 6.7% from the previous quarter. 

 You might be wondering why the building pipeline is drying up, given that the country is already grappling with a lack of housing supply that’s driven rents to record highs.  

Well, the latest NAB residential property survey has identified soaring construction costs as the leading constraint on housing development in NSW, Queensland and Western Australia (see graph).  

They are also considered to be a ‘very’ significant constraint in Australia overall.