- A boom in renovations is occuring in the NT
- A record $442M of renovations was undertaken last financial year
- HIA is concerned about labour and material shortages
Renovations in the Northern Territory are continuing to break records, according to the Housing Industry Association (HIA).
Luis Espinoza, HIA Executive Director, said it is anticipated $442 million of renovations activity was undertaken in 2020/21 – a record. For 2021/22, it is expected to be $375 million – above all the previous years.
Renovations, Northern Territory, since 2011
“The typical Australian household is saving significantly more than they were before and they are choosing to spend these savings on upgrading their homes. The boom in renovations is partly due to the shift towards online learning and working from home,” he said.
“All types of renovation projects are experiencing a surge in activity. This includes projects ranging from smaller DIY projects, to a kitchen or bathroom upgrade, through to major home extensions.”
Luis Espinoza, HIA Executive Director NT
Mr Espinoza noted that due to recent lockdowns, just over a third of all builders are engaged in home renovations.
“At the same time, there is also a record volume of new detached homes under construction. This is seeing demand for labour, land and materials outstrip supply.”
“This level of home building will not be sustained without a return of a stable and reliable pathway for skilled migration. Even with a return of migration, the current volume of new home commencements will not be sustained.”
He added that there are also encouraging signs that the demand for multi-units is returning above population growth.
“Approvals for units have picked up in New South Wales and Queensland after a pause in 2020 as investors look through the haze of the pandemic and anticipate a return of migration,” concluded Mr Espinoza.