The Housing Industry Association has released the Autumn 2013 edition of its National Outlook housing report card.
HIA's latest National Outlook highlights a challenging environment for businesses operating in both sectors of the residential construction industry.
"Cautious household attitudes continue to restrain expenditure on residential construction, although many prospective buyers are being impeded by tight credit conditions. This impediment is preventing some new home building and larger renovation jobs from proceeding," said HIA Chief Economist, Dr Harley Dale.
"A further tightening of credit conditions for residential development, together with disproportionately high and inefficient taxation as well as excessive regulation of new housing stifle the potential of an inherently efficient component of the Australian economy," said Harley Dale.
HIA is forecasting a flat year for housing starts in Australia in 2013, although NSW starts are forecast to increase by 14 per cent and WA starts by 17 per cent. Growth of 2.5 per cent and 2.8 per cent is forecast for national housing starts in 2014 and 2015, respectively, which would take starts to a level of 155,336.
A forecasted modest growth of 1.9 per cent in 2013 and 2.3 per cent in 2014 would take the value of total renovations investment to $29.7 billion, around $1.4 billion short of the 2011 peak.
While lower interest rates are playing a role in creating a more favourable environment for residential construction activity, Mr Dale believes Federal leadership is imperative in a range of areas including a reduction in taxation and regulatory costs, increased banking competition, and greater workplace flexibility.
HIA has launched its Federal Election 2013 policy platform - Housing Australians. The 50 suggested policy actions provide a blueprint for a future federal government to address the growing housing affordability challenge facing Australia.
