Storey split forecasts for new homes in Australia

Policy targeting specific build forms, and growing variation in input intensity (materials, labour and equipment hire) have increased the need for more detailed splits of residential construction. In response, more granular breakdowns have been estimated. These are now available on the databank for Australia Building Forecasting Service subscribers.

• The share of new house starts that are multi-storey is estimated to be the highest in New South Wales (49%). In Sydney, over 60% of new houses are multi-storey, compared to 30% in regional New South Wales. Western Australia (16%) and South Australia (17%) maintain notably lower rates of double storey development.

• It is anticipated that the share of new houses that are multi-storey will hold relatively flat at the current level of one third nationally into next decade. While we expect a slight shift towards multi-storey construction across all key regions, this will be offset by an increasing proportion of house construction occurring in regional Australia where the single storey build form dominates.

• Medium density development has shifted heavily away from low rise flats (up to 3 storeys) to townhouses over the past decade. It is expected that medium density will account for a growing share of greenfield development long run.