Building a new home is a dream for many people, but with so much uncertainty in the world right now, it's hard to know what the future holds.
If you're planning to build a new home in Western Australia, you might be wondering what the outlook for construction is in 2023.
In this blog post, we'll look at the current state of the construction industry in Australia and make some predictions for the future.
This might give you a good idea if 2023 is a good year to be building a new home.
The Construction Industry plays a key role in the Australian economy
The construction industry in Australia has been a key driver of economic growth for many years, and it's showing no signs of slowing down.
According to the latest data from the Australian Bureau of Statistics, the total value of construction work done in Australia reached $52.9 billion in the September quarter of 2020, a 2.6% increase from the previous quarter.
This suggests that the industry is still in good shape, and there are plenty of opportunities for those looking to build a new home in the coming years.
Growing population means strong demand for new homes
One of the reasons for this growth is the strong demand for housing in Australia, particularly Western Australia. With a growing population and more people choosing to live in WA, there's a constant need for new homes.
This trend is expected to continue in the coming years, with the Australian Bureau of Statistics predicting that the population will reach 30 million by 2029. This means that the demand for housing is unlikely to subside anytime soon, making it a good time to invest in building a new home.
Lack of Rental Properties
A lack of rental properties and a low vacancy rate can create a positive impact on the building industry and construction of new homes. When rental demand is high, property developers and construction companies may be more incentivised to build new homes.
As rental prices rise, some people may choose to invest in buying a home instead, further driving demand for new home construction.
Overall, a tight rental market can help spur growth and investment in the building and construction sectors.
Large Government spending on infrastructure
Another factor that's contributing to the construction industry's growth is the government's focus on infrastructure spending.
In 2019, the Australian government announced a $100 billion infrastructure investment plan that includes funding for road and rail projects, as well as housing and community development projects. This investment is expected to create jobs and boost economic growth, which will have a positive impact on the construction industry in the coming years.
COVID-19 and its impact on the construction industry
However, it's important to note that the construction industry, like any other industry, is subject to factors that are beyond its control.
For example, the COVID-19 pandemic has had a significant impact on the industry, causing disruptions to supply chains and delaying construction projects. While it's difficult to predict the full impact of the pandemic on the industry, it's likely that there will be some ongoing challenges in the coming years.
Despite these challenges, there's reason to be optimistic about the outlook for construction in Australia and WA in particular. With a growing population, strong demand for housing, and government investment in infrastructure, there are plenty of opportunities for those looking to build a new home in the coming years.
So, what’s the verdict?
If you're thinking about building a new home in Western Australia, the outlook for construction in 2023 is looking positive.
While there are some challenges that the industry may face in the coming years, the overall trend is one of growth and expansion.
With strong demand for housing, government investment in infrastructure, and a thriving construction industry, there's never been a better time to invest in building your dream home. So, take the first step today and start planning for your future.
The information contained in this article is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided to your objectives, financial situation and needs.