A plunge in new home building to a 10-year low will collide with the arrival of a record 1.5 million migrants, worsening housing shortages, driving up rents and inflating real estate prices.
Residential construction costs surged by a record 11.9 per cent over the past 12 months, but they are now easing amid falling demand, the Cordell Construction Cost Index shows.
The premium for houses over units has narrowed dramatically since May, as the rapid rise in interest rates triggered a faster deterioration in detached housing values compared to units, analysis by CoreLogic shows.