In Australia, the surge in renovation spending is exacerbating the housing crisis, while investment in new home construction remains低迷，这句中文不需要翻译。继续提供英文内容：flatlined. New data shows that Australians are allocating more funds towards altering existing properties, while spending on new homes has dropped to its lowest level per person in decades. The renovation boom, which has risen 6.5% in the past five years, has outpaced the decline in new home construction, which has fallen by 14%. This imbalance could potentially worsen the ongoing housing crisis.
The renovation boom is crowding out spending on new homes and potentially worsening the housing crisis , with new data revealing Australia ns are spending more altering existing properties while expenditure on new homes is at its lowest level per person in decades.
Victoria marginally exceeded the national average, with 41 per cent of construction spending going to renovations or rebuilds last financial year. Victorians also spent proportionally more than any other state on knocking down and rebuilding a home, a sign that building apartments is less financially viable in Melbourne’s suburbs than in Sydney’s, according to the analysis.
Home owners in Boroondara in Melbourne’s inner east spent more on renovations – $311.1 million – last financial year than any other municipality, followed by Mornington Peninsula , Stonnington in the inner south , Yarra in the inner east and Bayside in the inner south-east .KPMG urban economist Terry Rawnsley said the renovation boom was arguably diverting resources away from building new homes during a severe housing shortage.
“If you look at a suburb like Balwyn, there are a lot of planning covenants that prevent townhouses being built. If you look at places like Reservoir or even Coburg, the planning controls are relatively sympathetic, so knocking down a ’50s house and putting up two or three townhouses is no problem.”by streamlining the subdivision process.has also risen about 25 per cent since the pandemic. Building material costs have risen 35 per cent.
“There’s a few reasons for that: there’s been a big increase in house prices since the pandemic broke out. “For people who are thinking of upsizing, the choice sometimes comes down to handing over $70,000 or $80,000 for a bill which is money thrown in the bin, basically, or else putting that money towards a home renovation instead.”
Renovation Boom New Home Construction Housing Crisis Australia KPMG Analysis
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