Metricon takes top spot for the eighth consecutive time on HIA’s Top 100 Australian Builders

• Metricon took top spot for the eighth consecutive year.
• A drop off in activity was reported by three quarters of builders on the list.
• The ambitious 1.2 million homes goal will require reforms to achieve.

The Housing Industry Association (HIA) has unveiled its list of top 100 home builders for 2022/23, with Metricon topping the list for the eighth consecutive year. Launched this morning, the report ranks Australian builders by the number of homes commenced.

Home starts this year were subdued, and with the general malaise in the industry, it came as no surprise.

“A drop off in activity was reported by three quarters of the businesses on the list, with the lower numbers reflecting the challenging conditions facing the industry over the last year,” said HIA chief economist, Tim Reardon.

Since Covid hit, it has been one challenge after another. Reardon highlighted the cost escalations, worker shortages, and supply shortages across 2021 and 2022, with the latest hurdle being soaring interest rates.

“While there has been a heavy focus on the impact of higher borrowing rates on households with mortgages and the effect on demand for new homes, the higher borrowing costs also put further pressure on business margins during the year,” said Reardon.

“Leading indicators suggest that the volume of home building activity may fall further before a meaningful recovery takes hold. Industry conditions will remain challenging in the year ahead.

“Looking further out along the forecast horizon there will be better opportunities for the industry with the Australian Government having stated their objective of building 1.2 million homes over the next five years.

“This implies the industry will need to undertake a level of home building that has never been achieved in the past.

“This ambitious goal was set with full knowledge that it won’t be achievable under existing policy settings. A well thought out reform agenda will be required.”

Top ten home builders in Australia

*All dwellings built under franchise. Source: HIA.

Meriton Apartments also ranked as the top apartment builder in the country, while Hutchies took second place for apartments.

Among notable movements, ABN Group jumped two places compared to last year’s list.

The change from 2021/22 to 2022/23 was notable, with home starts for the Housing 100 dropping from 74,973 to 57,830.

Detached housing continued to have the lion’s share of the market, comprising 79% of main housing activity.

Metricon takes the top spot

The home builder has now ranked first for eight years in a row.

As the dust settles from the whirlwind Covid years, Metricon CEO, Brad Duggan, said the company’s focus has shifted.

“Now that our supply chain is more stable, Metricon’s primary focus for the next 12 months and beyond, with the support of our suppliers and trades, is to consistently provide value for money and affordability, while prioritising speed and efficiency in the construction process to deliver high-quality homes,” he said.

“We believe that volume home builders like Metricon play a critical role in keeping house pricing in Australia at affordable levels and in helping solve the current housing shortage across the country.”

“Homes are not going to get any cheaper, so we are constantly working on smart designs and specifications to address affordability. With interest rates now settling, I would urge any home buyer who has felt despondent about the property market, to investigate what we offer; we are sure to have a home that will meet any budget” Duggan concluded.

Nationally, there has been a decrease of 1,276 Metricon site starts compared to their 2021/2022 figures, which aligns with pre-pandemic levels and closely mirrors Metricon’s forecast and planning for the next three years.