After a strong number of years ABS figures on new home approvals indicate that activity across the Hunter contracted in 2022.
In 2022, 3,966 new dwellings were approved in the Hunter, a fall of 23 per cent compared to the previous year.
Detached dwelling approvals decreased 18 per cent in the Hunter compared to the 2021 calendar year. Accounting for 66.8 per cent of all approvals in the Hunter, detached homes remained the preference for home buyers, despite the decline.
Over the same period multi-unit approvals decreased by 32 per cent in the Hunter compared to the year earlier. As has occurred elsewhere in the country there appears to be structural changes in the demand for multi-unit housing as a result of a change in consumer preferences. We anticipate changing as higher migration rates return in the coming years.
Broadly the experience of the Hunter is not dissimilar to other regional locations where the 2022 cash rate increases resulted in lending for the purchase or construction of a new home falling and new home sales stalling. This slowdown in the final quarter of 2022, caused by an erosion of consumer confidence, has been sufficient to bring the building boom to an end. Further rate increases in 2023 will accelerate this downturn.
As a result of the decline in approvals the number of houses commencing construction is set to decline later this year and next. Nationally HIA forecasts commencements to be at their lowest level since 2012.
The value of approved major renovations and alterations also fell, with Hunter approvals decreasing by 13 per cent to $276.2 million. However, they still remain highly elevated historically.
Further details regarding HIA’s economic research, forecasts and reports can be viewed on our website .
Craig Jennion
Housing Industry Association
Executive Director - Hunter