New home approval figures experienced a big drop in October, the second consecutive monthly fall, adding to the nation’s shortage of homes.

Australian Bureau of Statistics figures show new home approvals fell by 6% in October with only 15,382 approvals. The majority of these (9,430) were for stand-alone houses, while the remainder (5,781) were for units.

The national drop is despite increases in three states: South Australia up by 18% and Victoria and Western Australia both rose 6%.

Approvals in New South Wales and Queensland fell by 19% and Tasmania dropped by 11%.

Master Builders Association chief executive Denita Wawn says the construction industry is continuing to battle high costs for materials and that all levels of Government need to work to address the issues affecting the industry.

CBA senior economist Belinda Allen says the industry is still working through the “HomeBuilder hangover” and that if rates peak soon, it will still be 12 to 18 months before there is a turnaround in the building cycle.