Boom to boost economy but dark times ahead, builders warn

AUSTRALIANS are set to build more houses in 2021 than ever before, with regional areas and first-home buyers to be the big winners of a 130,000-home bonanza.

But a “dark shadow” looms for the nation’s builders in 2023, with one of the country’s most influential housing groups warning detached home construction will fall to levels not seen since the global financial crisis.

Forecasts from the Housing Industry Association to be released on Thursday have revealed the construction will be worth about $40bn to the nation’s economy.

The figure trumps the 120,000 house builds recorded in 2018, and secures about 500,000 construction jobs nationwide as well as tens of thousands in fringe industries.

HIA chief economist Tim Reardon said the federal

HomeBuilder grants scheme was the “primary cause of this upgrade in our forecast”, which had sunk as low as 80,000 in worst-case scenarios considered last year.

The government program offers those building or substantially renovating a home a $25,000 or $15,000 grant, and as of Wednesday had attracted almost 85,118 applications nationwide, despite initially being envisaged to support just 27,000.

HIA is expecting a significant surge in applications before the program ends on March 31, with builders “holding onto contracts” so the clock starts on the six-month time limit as late as possible.

A nationwide hunt for tradies is under way, with the country’s largest volume home builder Metricon noting regional construction workers were in high demand in Victoria, Queensland, NSW and South Australia.