by Sanjeev Sah | May 30, 2023 | Market Updates

Australia’s housing supply crisis could get worse after the number of building approvals fell to 11-year lows over the first quarter of 2023, according to the Housing Industry Association.  

Both approvals for detached houses and multi-units fell, with the drop attributed to a combination of higher interest rates, rising construction costs, and increased labour uncertainties (see image).  

Building approvals were down in most states when compared to the same quarter last year with only Queensland (+8.6%) bucking the trend. 

In seasonally adjusted terms, decreases were led by  

* NSW = -34.1% 

* Victoria = -26.6% 

* Western Australia = -14.9% 

* Tasmania = -10.8% 

In original terms, the ACT saw building approvals fall 35.3% year-on-year with the Northern Territory down 19.1%.