The residential construction industry will have another healthy year in 2015-16, according to the Housing Industry Association (HIA).

 

The HIA’s new outlook for home building and renovations says there is a strong pipeline of approved activity that will sustain a historically high level of new dwelling starts.

 

“This will be a very good result not only for the new home building sector but for the broader economy,” the HIA reported. “Approvals have been outpacing commencements for much of the current cycle. This has resulted in a sizeable backlog of dwellings that have been approved but have not yet commenced construction. This backlog totalled over 35,000 at the end of June.”

 

The outlook also noted that while Australia’s renovations market declined almost 30% between 2011 and 2013, a more recent modest recovery is forecast to continue.

 

“The recovery in renovations activity will be helped by the ageing of the dwelling stock across Australia over the rest of the decade,” it said.