The number of home building approvals continues to lag, pointing to a potential undersupply of new dwellings in the near future.
A total of 14,529 approvals were issued in November, according to the most recent data from the Australian Bureau of Statistics, compared to the 10-year average of 17,254 approvals per month.
As the graph shows, approvals have remained under that long-term average for 15 consecutive months.
If a low number of approvals are being issued today, that suggests a low number of new homes will be built in the next year or two. Any undersupply of housing would be likely to lead to higher demand, putting upward pressure on prices and rents.
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