Australia has been experiencing a housing construction boom despite the challenges the economy has faced as a result of COVID-19 impacts. Sparking the boom, the Federal Government’s HomeBuilder grant incentivised home buyers to build rather than purchase existing properties. Since then a myriad of factors have continued to fuel new home construction despite the fact that migration, traditionally a key influencer of property growth, was at a standstill throughout the pandemic.

Two key drivers increasing the demand for homes have been the changing habits and needs of people during the pandemic, as well as good borrowing conditions with record-low interest rates. As a result of lockdowns and working from home, significantly more time is being spent at home, reducing spending habits. The increase in household savings has allowed more people to enter the property market who were unable to do so previously.

Since homes are being used more than ever (and for more purposes than ever), what people require from their properties has evolved. Most significant is a need for more space which has created a greater demand for detached dwellings rather than apartments or townhouses. With the pandemic conditions driving the desire to purchase a property, it has also been made even more appealing and achievable with record-low interest rates and a willingness from the banks to lend.

The increased call for properties has pushed house prices higher, exacerbated by fewer listings due to pandemic restrictions and a fear of missing out (FOMO) from home buyers. According to Corelogic, Australian house prices have increased by 18.4% in the last year, which is the fastest rate of growth in more than 30 years.

The CV Housing team has seen first hand the direct impact of the housing boom. To meet the heightened demand for new homes, our Housing team has grown by more than 50% in just one year. Over the past five years (FY16 – FY20), CV completed 826 housing jobs on average per year. In the last financial year (FY21), the team completed 1,257 jobs; an increase of more than 52% over the previous five-year average. In March 2021, CV started 171 new jobs, setting a record for the highest number of housing starts in a single month.

The Housing team continues to grow, expanding into new regions to assist builders with new developments. On track for another strong financial year, the team is expecting to complete 1,400 – 1,500 homes.