Impact of Affordability on Renovations Activity

This document is a report that outlines the effects of housing affordability pressures on renovations activity in Australia. It details how the deterioration of housing affordability since the pandemic has led to increased interest in home renovations as an alternative to new housing. The report explains that the pandemic initially spurred a boom in housing and renovations, driven by government stimulus and low interest rates. However, rising costs of building materials and skilled labor have significantly increased the expenses associated with new housing, making renovations a more appealing option for homeowners. The report also discusses the ongoing challenges in the housing market, including land price surges and policy decisions that have compounded costs. It notes that while the demand for new housing has decreased, renovations are expected to continue growing due to factors such as extreme weather events and aging homes. The report concludes that without significant policy changes, the outlook for renovations remains more favorable than that for new housing.