The suburbs where we’re building the most new homes

Australia is in the midst of a housing crisis with supply challenges and demand pressures leading to a clogged pipeline of unfinished new home builds and approvals per capita languishing at decade-lows. There aren’t enough tradies to finish the homes under construction in normal timeframes. Meantime, construction costs have risen by 40 percent since late 2019 and contributed to dramatically higher insolvencies among building companies. High interest rates and lengthy approval processes have also prompted some developers to shelve plans for new projects altogether.

All of these challenges mean the National Housing Accord, with its ambition to build 1.2 million well-located homes over the next five years, will begin shortly amid very difficult conditions. However, the Federal and state and territory governments have agreed to the plan and plenty of money was allocated in the recent Federal Budget to get the program officially underway from 1 July.

Meanwhile, the Housing Industry Association (HIA) has published a report revealing the areas that are in line to receive the most new homes soonest, based on the value of approvals during FY23. The HIA has paired this data with population figures to identify the growth hot spots across Australia.

HIA economist Maurice Tapang said the top 20 hot spots for new approvals and above-average population growth were predominantly suburbs with greenfield developments. These developments require state governments to fund and build supporting infrastructure such as power lines, sewage and water pipes, roads and footpaths to service thousands of new residential lots.

“This is testament to the role that greenfield developments play in supporting the growth of our cities,” Mr Tapang said. “The drivers of housing demand are population and economic growth. Supporting population growth will require supplying adequate homes, which will entail providing the necessary infrastructure and land supply to grow our cities.

“As the high cost of the typical house and land package in some of our capital cities becomes out of reach to the typical income earner, it is important for policymakers to facilitate the supply needed to fill housing shortages. In order to build the Australian Government’s target of 1.2 million homes, there needs to be a healthy balance between greenfield and infill developments to support building well-located homes of all types.”

Australia’s top 6 home building and population hot spots

Box Hill – Nelson

In NSW, the top new home building hot spot is Box Hill – Nelson in Sydney’s Hills District, with $597 million in approvals and population growth of 26.5% in FY23.

Fraser Rise – Plumpton

Fraser Rise – Plumpton in Melbourne’s west was Victoria’s biggest growth hot spot, with $660.1 million in approvals along with 26.4% population growth.

Marsden Park – Shanes Park

Located in Sydney’s Blacktown area in the western suburbs, Marsden Park – Shanes Park booked $370 million in approvals and 19.7% population growth.

Tarneit – North

Located in Melbourne’s western suburbs, Tarneit – North recorded $384.3 million in new home building approvals and 18.9% population growth.

Rockbank – Mount Cottrell

Also in Melbourne’s western suburbs, Rockbank – Mount Cottrell had $593.4 million in approvals and 18.7% population growth.

Chambers Flat – Logan Reserve

Chambers Flat – Logan Reserve in the City of Logan, south of Brisbane, was Queensland’s biggest growth hot spot with $264.6 million in approvals and 18.4% population growth.

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