Australian Housing Approvals Hit Eight-Year High in June Quarter

Australian housing approvals reached an eight-year high during the June quarter, with nearly 53,000 new homes approved nationwide. A significant portion of this growth occurred in regional areas, where approvals climbed to over 15,760, marking the highest level since September 2021 and a sharp increase from the 14,470 approvals recorded in the previous quarter.

Terry Rawnsley, a senior economist at KPMG, noted that the rise in regional approvals reflects a broad economic shift as smaller cities attract more population growth, workers, and investment. This trend is particularly evident in regional hubs such as Newcastle and Albury-Wodonga. Growth in these areas is supported by diversified economies and improved infrastructure, including enhanced rail services benefiting Ballarat and Bendigo in Victoria and improved road links in the Hunter region.

Despite the increase in approvals, a shortage of construction workers remains a primary obstacle. Rawnsley warned that the construction sector will require a larger workforce to successfully convert these approved projects into actual housing supply.