Who’s keen to talk about building approvals on Friday afternoon?

Maybe not. We hear you.

If you’re in the trade or trying to get a job off the ground, this one’s worth a look to bring some positivity into your weekend.

February’s figures from the ABS were out this week, and they paint a mixed picture. Approvals dipped slightly (down 0.3 per cent from January), but zoom out and things look better: approvals are up 8.4 per cent over the year. That’s a step in the right direction, just not a big one… yet!

What’s the story?

According to Master Builders Australia, detached housing approvals actually lifted by 0.2 per cent in February. That’s despite a small fall overall, thanks to a drop in higher-density approvals. So while houses on their own blocks are holding firm, we’re still behind when it comes to apartments, townhouses and the rest.

HIA backed that view, saying the recovery in detached housing is being fuelled by population growth, stable interest rates, and low rental vacancies. They also reckon the RBA’s recent rate cut will give the sector a bit of a kick along.

Our recap on the HIA State of the Nation event also has some really good takeaways and trends.

But here’s the rub: even with this “improving confidence”, we’re still not where we need to be.

Why it matters

The Federal Government has a target: 1.2 million new homes over five years.

That’s about 240,000 homes a year.

In the 12 months to February? We hit 177,400.

So we’re still around 60,000 short, and that gap’s got to close, fast, if we’re serious about fixing housing affordability.

As Shane Garrett from Master Builders puts it,

“There’s still a long way to go.”

Denita Wawn, the MBA CEO, is calling for more investment and less red tape. HIA’s Tom Devitt agrees, pointing the finger at labour shortages, finance costs, and government regulation as the handbrakes on progress.

What do we know?

Some states are charging ahead:

• South Australia saw a 48.4% boost in approvals over the past three months.
  
• Western Australia followed with 30.2%.
  
• Even New South Wales had a decent rise at 28.1%.
  

But Victoria’s barely keeping up. Tasmania dropped, and the ACT? Down 25.9%.

It shows how much local conditions, land prices, infrastructure, and planning rules shape what gets built and where.

As HIA put it,

“The brightest outlooks are dependent on the ability to provide affordable, shovel-ready land.”

What should you watch for?

We reckon the next few months will be telling. So, here are the questions we’d like to hear answered,

• Will the interest rate cut be enough to bring investors back in?
  
• Will we finally see action on approvals reform, infrastructure funding, and land release?
  
• Are both major parties willing to go beyond promises as the federal election rolls on?
  

Here’s what we’re hearing from the TGB community: Builders are ready to go. But if the system doesn’t shift, approvals won’t keep up with demand and renters, buyers, and builders will all cop the consequences.

Macro trends vs. what you feel on the ground

It’s one thing to look at national trends, but another to feel what’s really going on day to day. We know many of you are still chasing jobs, waiting for clients to sign off, or dealing with material delays and workforce shortages.

The macro might be turning, but on the micro level, it still feels like a grind. That’s the balance we try to strike looking at the big picture, while staying rooted in what you, our community, are seeing on site, and in your inbox.

What do you reckon?

At The Good Builder, we’re watching this space closely. These topics might seem like policy-speak, but they affect every builder’s bottom line and every Aussie family trying to find a place to live.

What do you think about sharing more of our take on housing approvals, policy reforms, and where builders can play a bigger role in solving the housing puzzle?

Do you see the value in that? Want to hear our take more often?

Drop us a line or leave a comment. We’re keen to hear from builders, tradies, and anyone trying to get a project off the ground.

Author: Jonathan Tibbits

Starting his career as a lawyer, Jonathan transitioned into project management, compliance, and certification for companies throughout the industry supply chain in Australia and New Zealand. With international experience in green building, sustainability and stakeholder communication, he is passionate about innovation and building transparency and trust.