Higher rates will not build more homes
The RBA's latest interest rate rise will further suppress new home construction, according to HIA. The industry body says increased housing supply is the only sustainable fix for affordability problems.
How will rising interest rates affect new home construction and work for tradies?
Builders and related trades face fewer new project starts as rate rises deter developers and buyers. Less new work in the pipeline affects carpenters, plumbers, electricians and other residential trades.
Key takeaways
- The RBA rate rise is expected to further reduce the number of new homes being built across Australia.
- HIA says boosting housing supply is the only sustainable solution to the affordability crisis.
- Fewer new builds means less work flowing to residential trades in the near term.
- The rate rise adds pressure at a time when the industry is already struggling to meet housing demand.
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Modern Methods of Construction require skills evolution, not workforce replacement
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