Centurion Framing Systems’ Post

Today's top construction story focuses on how the Government are to miss 1.5m homes target by half a million homes without funding and policy intervention. The findings are from a new report by Savills, commissioned by the National Housing Federation, which examines how the government can deliver on its 1.5 million new homes target in the current housing and economic climate. It reveals that there is likely to be a shortfall of up to 95,000 new homes a year on average. Check out the full article here 👉 https://zurl.co/z6MV (Specification Online) #government #housing Savills Residential

🏡 Housing Supply Shortfall: Demand Exceeds Construction 🏗 A recent report from the National Housing Supply and Affordability Council highlights a troubling trend for #Australia's housing market over the next five years. 📉 Between the 2023-24 and 2028-29 financial years, around 1.08 million new households are expected to form. However, only about 1.04 million new homes are anticipated to be built, resulting in a housing shortage 📉 This imbalance is due to various factors: rising home construction costs, longer building completion times, increasing builder bankruptcies, and the high cost and limited availability of land suitable for housing. Differences in planning processes across states and councils add to the complexity, suggesting that #propertyprices will continue to rise under these constraints....

🚨New National Housing Federation research with Savills in the Financial Times shows that supply of new affordable housing is the only way to meet 300,000 homes target 🚨 The figures are stark, but as the Savills research clearly shows, boosting the supply of new affordable homes is not only key to solving the housing crisis, it’s also the only way to meet the government’s housing targets in the current climate and crucially can help the construction industry recover from the market downturn. 📰Here’s a link to the full article and for anyone who likes their news analogue not digital you can find the story on page 1 and page 2 of the FT https://lnkd.in/eJkEGtRZ #affordablehousing #socialhousing #PlanForHousing

New construction data out today shows Australia still has a long way to go in raising home building rates to meet our national potential and need.   The construction sector completed $23.4 billion of residential buildings in the September quarter, a welcome increase of 1.8% on June.   However, in real terms this is still around the same level as a decade ago, and we are yet to get back to the house building rates of just before the pandemic.   As Innes Willox argues: "Given the massive housing shortages afflicting much of our country, this simply isn't good enough". The challenge is clearly specific to house building, as both the engineering and commercial construction sectors have been able to grow successfully since the pandemic. "The solutions to the house building problems are well understood by industry – we need to control the rampant cost pressures, alleviate severe workforce shortages, and provide rational planning frameworks that simplify the pathway to well-located housing developments."   Read Australian Industry Group (Ai Group)'s statement on house building performance here: https://lnkd.in/gHHrQP3E And our research note on the crisis afflicting Australian house building here: https://lnkd.in/guvH8Z-6 #construction #housing #industry #australia

📉 𝐑𝐞𝐬𝐢𝐝𝐞𝐧𝐭𝐢𝐚𝐥 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐨𝐧 𝐰𝐨𝐫𝐤 𝐟𝐚𝐥𝐥𝐬 𝟐.𝟖% The key to improving housing affordability is to build more #housing. But the amount of new housing coming online is actually declining😒. A total of $19.6 billion of #residential construction work occurred in the first quarter of 2024, according to the latest data from the Australian Bureau of Statistics. That was 1.2% less than the quarter before and 2.8% less than the year before. Master Builders Australia CEO Denita Wawn said residential #building activity has slumped at a time when communities are crying out for new homes. “If we are going to undo decades of under-building and resolve this housing crisis, we need to change the #economic environment to encourage investment across all sectors of the industry by reducing the cost of construction work, reducing build times, reducing planning delays and slow approval processes,” she said.

Like everyone else, I’d love to see an increase in housing supply, to address affordability issues. Unfortunately, though, we’re not building enough houses. There are a few reasons, including strong population growth (which accelerates demand) and red tape around the approvals process (which impedes supply). Another reason is that the cost to build a new house is continuing to rise. Back in the September 2022 quarter, housebuilding costs were growing at a staggering 20.5% per year. Fortunately, the rate of growth fell to 3.9% in the September 2023 quarter ... but it's since increased, reaching 4.3% in the June 2024 quarter, according to the most recent data from the Australian Bureau of Statistics. Of course, there are still lots of houses being built throughout Australia – but fewer than if construction costs weren’t rising so quickly. ______ If you are considering building a new house and are wondering how to finance the project, schedule a meeting here: https://buff.ly/3YZu3wO

Australia’s home approvals are dropping just when we need more homes the most. With fewer apartments being built and rising construction costs, we’re falling far short of the government’s 1.2M homes target. Watch the full video here:https://lnkd.in/gZcJ3TyE #Hotspotting #HousingCrisis #PropertyMarket #RealEstateAustralia

I spent some time talking to people and sharing opinions about the quality of residential buildings. Australian houses have faced criticism for their perceived low quality compared to other highly developed nations. While it's essential to recognize that not all Australian homes fall into this category, several factors contribute to this perception. 1. Profit-Driven Construction: Some builders prioritise profit over quality. They may cut corners to maximize their margins, leading to subpar construction. Profit incentives can lead to compromises in materials, workmanship, and overall structural integrity. 2. Normalisation of Deviance: Over time, standards may erode, resulting in a gradual decline in quality. This phenomenon, known as "the normalization of deviance," allows substandard practices to become accepted until disaster strikes. 3. Regulatory Challenges: While Australia has building standards, enforcement can be lax. Inspectors and certifiers, often privatized, may overlook issues to maintain steady work. 4. Unique Demographics and Land Constraints: Australia's housing crisis stems from its demographics and limited available residential land near jobs and services. High construction costs, community opposition to development, and long lead times for new supply further exacerbate the situation. 5. Historical Context: Over the past century, housing quality improved due to sanitary regulation, social housing, and technological advancements. However, challenges persist, especially for low-income households. I am keen to know your thoughts on this topic. #HousingQuality #AustralianHomes #ConstructionStandards

Residential construction work falls 2.8% The key to improving housing affordability is to build more housing. But the amount of new housing coming online is actually declining. A total of $19.6 billion of residential construction work occurred in the first quarter of 2024, according to the latest data from the Australian Bureau of Statistics. That was 1.2% less than the quarter before and 2.8% less than the year before. Master Builders Australia CEO Denita Wawn said residential building activity has slumped at a time when communities are crying out for new homes. “If we are going to undo decades of under-building and resolve this housing crisis, we need to change the economic environment to encourage investment across all sectors of the industry by reducing the cost of construction work, reducing build times, reducing planning delays and slow approval processes,” she said. #property #realestate #homeloans