Australia's housing pipeline is under pressure from every direction
Rising construction costs, skilled labour shortages, weaker new-home sales and tougher project economics are putting Australia's housing pipeline under growing pressure even as demand for new homes remains strong.
Tight margins are contributing to record insolvencies in the construction sector. (Image source: Virrage Images/Shutterstock.com)
Australia’s housing supply pipeline is being squeezed from multiple directions, with construction costs accelerating, skilled labour remaining scarce, new-home sales weakening and developers facing tougher decisions about whether projects can still stack up financially.
The pressure is emerging just as governments and the private sector attempt to increase housing construction, raising concerns about how quickly new projects can move from approva…
