Higher rates will not build more homes
The RBA's latest interest rate rise will further suppress new home construction, according to HIA. The industry body says increased housing supply is the only sustainable fix for affordability problems.
How will rising interest rates affect new home construction and work for tradies?
Builders and related trades face fewer new project starts as rate rises deter developers and buyers. Less new work in the pipeline affects carpenters, plumbers, electricians and other residential trades.
Key takeaways
- The RBA rate rise is expected to further reduce the number of new homes being built across Australia.
- HIA says boosting housing supply is the only sustainable solution to the affordability crisis.
- Fewer new builds means less work flowing to residential trades in the near term.
- The rate rise adds pressure at a time when the industry is already struggling to meet housing demand.
Related
Construction needs an effective enforcer not a paperwork obsession
The Housing Industry Association (HIA) warns that proposed national construction standards and new procurement rules miss the mark. It says the measures land hardest on home builders and argues for an effective enforcer rather than more paperwork.
Why it matters: Home builders and small residential contractors could face extra compliance paperwork and procurement requirements, adding admin time and cost to jobs without necessarily lifting building quality.
Potential Commonwealth Standards for the Construction Industry
The Housing Industry Association (HIA) says it backs a lawful, safe, productive and sustainable construction industry and has long called for structural reform. It says the consultation on potential Commonwealth standards proposes several measures it is concerned about.
Why it matters: Commonwealth standards could add new compliance requirements for builders and subcontractors across residential construction. The article gives no detail yet, so the practical impact on trades is unclear.
Secure Australian Jobs Framework
The article argues that residential building and its supply chains should be exempt from the Secure Australian Jobs Framework and any related procurement obligations. It says government effort should go towards improving productivity instead.
Why it matters: Builders and the trades working in residential construction could avoid extra procurement obligations and compliance work if the exemption is granted. Otherwise, supply chain and tendering requirements may change.