Housing Construction expected to remain at Historically Low Levels
The Housing Industry Association (HIA)’s latest Autumn edition of its National Outlook report has forecasted no increase in the amount of new housing construction work to be commencing in 2013.
The report predicted that the amount of new projects in residential construction to decline from an approximated 147,610 last year to a predicted 147,390 this year, which would be the second lowest number recorded for the last ten years.
The HIA forecasted only a small growth rate of 2.5% for 2014 and 2.8% in 2015, indicating that it expected activity to remain low for the near future.
Commenting on the report, HIA chief economist, Harley Dale, pointed to a mixture of cautious attitudes among households with regard to expenditure coupled with restrictive credit conditions as being responsible for the limited growth rate.