Housing Industry Association , the voice of Australia’s residential building industry, reports that the Reserve Bank Board has voted to maintain the interest rates for the sixteenth consecutive month.

According to HIA Chief Economist, Harley Dale, Australia is on track to experience its longest period of interest rate stability in modern history with no hint of a short term interest rate rise in the RBA’s statement.

Harley Dale notes that borrowing costs are set to remain at or close to record lows for some time to come; the super low interest rates have unleashed substantial pent-up demand for new housing to the benefit of many parts of Australia’s domestic economy beyond residential construction.

He observed that the interest rate boost to the new home building sector has almost run its course, although the pipeline of new residential construction activity is very healthy. However, a large number of aspiring home buyers will continue to be locked out of the new housing market due to lack of titled residential land, excessive planning delays and restrictions, and various taxes and charges that combine to make new housing one of the most heavily taxed sectors of the Australian economy.

Harley Dale concludes that low interest rates will not fix these constraints; however, a lack of policy action to address these issues robs the Australian economy of a further burst of growth in new housing supply.