Australia’s housing market over the past five years has been a study in extremes, with data from the Australian Bureau of Statistics revealing a complex story. A pandemic-fuelled surge in approvals once seemed like a boon for aspiring homeowners and builders, but the reality has been far more tangled. Rising costs, construction delays, and shifting migration trends have turned what began as a policy-driven boom into a landscape fraught with challenges and lingering bottlenecks.
Between July 2019 and June 2024, the housing sector underwent a rollercoaster of change. Before the pandemic, housing approvals and commencements had slowed, reflecting a cooling market. By 2019-20, approvals fell to 174,528 and commencements to 172,959, the lowest figures since 2013-14. This slump, however, was short-lived. As the pandemic swept across the country, government stimulus programs and record-low interest rates injected a shot of adrenaline into the market.
By 2020-21, approvals had jumped to 221,974, a staggering 27.2% increase from the previous year. Commencements followed suit, rising to 213,379. This surge marked the highest levels since 2017-18, with new houses leading the charge. The HomeBuilder program played a significant role here, offering grants of $25,000 for new builds and later $15,000 for contracts signed in early 2021. These incentives, coupled with a cultural shift toward more spacious living during lockdowns, saw detached homes dominate the landscape.
But the boom came with challenges. Construction couldn’t keep pace with demand. Labour shortages, material delays, and even extreme weather events created a perfect storm of bottlenecks. By June 2021, the number of private houses under construction hit 104,315, a staggering 48.4% higher than pre-pandemic peaks. Western Australia bore the brunt, with a 175.8% increase in houses under construction since 2019-20. Builders and tradespeople faced intense pressure, leading to extended completion times and rising costs.
The delays were felt nationwide. The average time to complete a house stretched from 6 months in 2019 to nearly 10 months by mid-2024. Western Australia saw the most dramatic increase, with completion times soaring to 16 months by March 2024. For families waiting to move into their dream homes, these delays became a test of patience.
Meanwhile, the cost of construction skyrocketed. Between 2019 and 2024, the average cost to complete a home rose by 28.5%, climbing from $345,410 to $443,828. Queensland saw the steepest rise, with costs surging by 44%, while Western Australia, despite its prolonged completion times, recorded the lowest increase at 20.6%. Fixed-price contracts, signed before costs began to climb, further squeezed builders’ margins, pushing some into insolvency and exacerbating delays.
The narrative wasn’t about rising numbers alone. Migration patterns shifted during the pandemic, altering where homes were being built. Regional areas saw a brief boom as people left cities in search of space and affordability. By 2020-21, the proportion of houses approved outside capital cities rose to 35.3%, up from 33% the previous year. This trend reversed as cities regained their allure post-pandemic, with approvals in greater capital areas bouncing back to 67.7% by 2023-24.
Apartments, on the other hand, struggled to keep pace. Approvals for new apartments fell to just 29,470 in 2023-24, the lowest since 2008-09. With longer lead times and higher construction costs, apartments found it harder to compete with detached homes, which remained the preferred choice for many Australians.
The housing story also underscores the power of policy. Government stimulus programs drove the initial surge, but rising interest rates and construction costs tempered the momentum in the years that followed. By 2023-24, approvals fell below pre-pandemic levels to 163,279, the lowest since 2011-12.
For readers in our community, particularly those with families or those planning to enter the property market, these trends offer both caution and clarity. While the dream of owning a home remains strong, the landscape has become more challenging. Rising costs, longer waits, and shifting regional dynamics require careful planning and a keen eye on the market.
It’s also a moment to reflect on how broader economic and social shifts impact housing. From government incentives to the global supply chain, the housing market is a mirror reflecting our collective priorities and challenges. As we move forward, the lessons of these five years will likely shape the policies and practices of the future.
For those weighing their next steps—be it building, buying, or investing in property—the importance of timing and informed decisions cannot be overstated. The resilience of builders, the frustrations of delays, and the ebb and flow of migration patterns all form part of a larger narrative. Over the past five years, the evolution of housing in Australia has been a lens through which to view how global events, local policies, and human priorities converge to shape the places we call home.
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on X | Instagram | Facebook
🏠 Australia’s #housing market has faced ups & downs, from pandemic booms to rising costs & delays.🌪️ Is the dream of #homeownership still alive? 🤔 Share your thoughts on the shifting landscape! 💬 #TheIndianSunhttps://t.co/IKBvjP7vT0
— The Indian Sun (@The_Indian_Sun) November 24, 2024
Donate To The Indian Sun
Dear Reader,The Indian Sun is an independent organisation committed to community journalism. We have, through the years, been able to reach a wide audience especially with the growth of social media, where we also have a strong presence. With platforms such as YouTube videos, we have been able to engage in different forms of storytelling. However, the past few years, like many media organisations around the world, it has not been an easy path. We have a greater challenge. We believe community journalism is very important for a multicultural country like Australia. We’re not able to do everything, but we aim for some of the most interesting stories and journalism of quality. We call upon readers like you to support us and make any contribution. Do make a DONATION NOW so we can continue with the volume and quality journalism that we are able to practice.
Thank you for your support.
Best wishes,
Team The Indian Sun
