INDUSTRY NEWSNationalReal Estate News

House building boom in 1980’s set to bolster opportunities for reno market in next decade: HIA

The boom in house building in late 1980s is set to provide big opportunities in the renovations market over the next decade, according to the HIA.

HIA released its latest edition of the HIA Renovations Roundup Report yesterday. The Report is a review of Australiaโ€™s $32 billion home renovations market. The publication analyses latest developments in home renovations activity and reveals the results of the exclusive renovations market survey. The Report also provides state-by-state forecasts of future renovations activity.

โ€œOur analysis shows a strong correlation between the volume of renovations work and the age of the housing stock,โ€ HIA Senior Economist Shane Garrett said.

โ€œThe more houses between 30 and 35 years of age, the greater the need for renovations and improvements.

โ€œThe really good news is that the number of houses in the key renovations age group will increase substantially over the next decade โ€“ a result of record volumes of detached house building during the late 1980s. Houses belonging to the โ€˜1980s Clubโ€™ will become increasingly ripe for renovations work over the coming years.

โ€œAlso encouraging are the results of the latest HIA Renovations Market Survey which indicate that two in every five of those operating in the renovations market intend to increase their employee headcount over the next 12 months. This is a strong vote of confidence in the durability of the current renovations market recovery,โ€ concluded Mr Garrett.

HIAโ€™s updated forecasts for the home renovations market indicate that the activity is set to inch up during 2017 overall (+0.2 per cent) with a further small increase (+0.4 per cent) during 2018. In 2019, the pace of expansion is predicted to accelerate to 4.9 per cent with a further rise of 2.9 per cent in 2020 bringing the value of Australiaโ€™s renovations market to $35.12 billion.

Source
HIA Renovations Roundup Report
Show More

Azal Khan

Azal Khan was a in-house features writer for Elite Agent Magazine.