Australia’s residential building industry representative, the Housing Industry Association (HIA) reveals the gains delivered by a strong home building market to the wider Australian economy. HIA has recently released the Winter 2014 edition of its National Outlook, Australia’s most comprehensive housing report card.

According to HIA Chief Economist, Dr Harley Dale, the report card confirms a strongly performing new home building market in Australia, which is delivering gains to the wider economy in terms of both growth and employment. He notes that the national new home building recovery is a positive story of immense significance, given the disproportionate focus on negative economic news.

Sustained recovery is also being observed in renovations investment from the decade low of 2013.

Harley Dale explains that new dwelling commencements, the key metric for the sector, are forecast to hit over 184,000 in 2014, which would be the second highest level on record, and will continue to maintain this historically high level through next year.

While the current recovery in residential construction still masks considerable differences in conditions across states and territories, and in terms of building type, for both new housing and renovations activity, Harley Dale believes a further broadening of the recovery would certainly be a desirable outcome.

New dwelling commencements are forecast to increase by 9.6 per cent in 2014, following growth of 11.1 per cent in 2013, reaching a peak of 184,291. Commencements are forecast to decline by 4.4 per cent to a level of 176,238 in 2015. Total investment in renovations is forecast to increase by 3.8 per cent this year and by 1.3 per cent in 2015 to reach a value of over $29.4 billion.