The number of new home starts in Australia will increase by more than 20 per cent over the next two years, according to HIA's chief economist, Harley Dale.
Commenting on its latest National Outlook report, Dale says "The reasons for the recovery are well known - low interest rates, first home incentives, and a massive boost for social housing. And with consumers feeling more confident about job security and the general economy, new home building and renovation activity will benefit."
"Since October 2008, when the first home grant was boosted, lending commitments to build new houses have increased by about 60 per cent. But local government permits to build new houses have increased by a much more modest 20 per cent, indicating there is a lot of new building work to come into the pipeline."
The biggest gains in home building are expected in NSW, followed by Victoria and Western Australia.
The rise in residential building will be joined by an expansion of construction expenditure on mining projects, ports, water, transport, energy supply and communications, the HIA says.
