BIS Shrapnel released their latest housing outlook this week and it’s another forecast which suggests the Australian economy is on track to deliver the economic transition Australia needs.
BIS are bullish on housing construction – which is where the jobs lost in mining will go – noting that “dwelling building activity will reach a new high in terms of homes constructed, and more of those new homes will continue to be in apartment towers”.
BIS associate director Dr Kim Hawtrey said, “New housing starts are forecast to reach 190,000 nationwide in 2014/15, which will surpass the previous peak of around 187,000 set back in the 1994 boom.”
Key to the strength in construction according to Hawtrey is pent up demand coming from population growth continues to be the big driver for new dwellings.
This forecast is in line with recent expectations from the Housing Industry Association and is exactly what the economy needs as it moves from mining for domestic growth.