Housing activity slumps

Housing activity slumps

20 April 2011 by Staff Reporter 0 comments

Staff Reporter

The Housing Industry Association is calling on the federal government to boost new housing activity in a bid to alleviate the crippling housing shortage.

ABS figures released yesterday confirmed that residential building activity ended 2010 on a soft note, with residential building work falling 0.6 per cent in the December 2010 quarter.

HIA economist Harley Dale said the weak data looked set to continue well into 2011.

“In 2011 we look set to experience one of the weakest years for new home starts since the mid 1990s,” Mr Dale said.

“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.

“New home building activity peaked back in mid-2010 and ongoing weakening in new housing conditions is having a significant adverse impact on governments’ budgets.”

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.

Staff Reporter

The Housing Industry Association is calling on the federal government to boost new housing activity in a bid to alleviate the crippling housing shortage.

ABS figures released yesterday confirmed that residential building activity ended 2010 on a soft note, with residential building work falling 0.6 per cent in the December 2010 quarter.

HIA economist Harley Dale said the weak data looked set to continue well into 2011.

“In 2011 we look set to experience one of the weakest years for new home starts since the mid 1990s,” Mr Dale said.

“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.

“New home building activity peaked back in mid-2010 and ongoing weakening in new housing conditions is having a significant adverse impact on governments’ budgets.”

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.

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