Massive as in $96.4 billion in growth.
According to the Master Builders CEO “housing alterations and additions are expected to grow by 14.9% over the period of 2016/2017.[1]” To put this into perspective for the last three years it has been a measly average of 3.2%[2]. The growth in renovations will help builders nationwide and will nicely compliment the lift in building activity.
Breakdown of growth in renovations across the country[3]
The below are the expected yearly growth for all states.
- Northern Territory: average yearly growth 27.8% up from average of 9.7%
- New South Wales: 19%
- Western Australia: 18.6%
- ACT: 16.9%
- Queensland: 14.6%
- Victoria: 12.5%
- South Australia: 3.1%
- Tasmania: 1.5%
As MIB – Men In Building mentioned in our last blog on home renovations, the Housing Industry Association estimated that in three years the money spent on home renovations would reach $30.3 billion. So it will definitely be interesting to see who’s right: the Master Builders or the Housing Industry Association.
The Housing Industry Association also released a report back in 2011 about a study they conducted. Turns out, every time “a new series of The Block aired, spending on renovations was boosted by $251 million.[4]” An economist with the HIA said that “an airing of The Block in any particular quarter causes a statistically significant boost to renovations six months later.[5]”
What does all this mean for homeowners?
It means it’s a good time to renovate and extend your house. There is solid momentum in the building industry—house prices are going up and the number of auctions being cleared has also increased.
Essentially, it is prime time to undergo that renovation. Or, why not pick up that “renovators dream” at the next auction and fix it up and sell it for a profit? With the market like it is, and with both the Housing Industry Association and Master Builders Australia both predicting a more-than-healthy growth over the next couple of years, it’s never been a better time to renovate.
How MIB – Men in Building can help you
With extensive experience helping homeowners with their renovations and extensions, MIB – Men In Building have a large team of:
- Painters
- Electricians
- Carpenters
- Plasterers
- Bricklayers
- Tillers
- Roofers
- Glaziers
Based in Brisbane we also carry out work on the Gold Coast. Whether you are looking to build from scratch, extend your house or help with kitchen renovations. Regarding kitchen renovations we offer: custom-made kitchens, DIY kitchens and preassembled kitchens.
If you would like to know more about how MIB – Men In Building can help you, please contact us today. We offer a no-obligation free inspection, estimate and quote.
[2] ibid
[3] Following statistics are taken from the above source: MIB – Men in Building take no responsibility for the accuracy of these statistics.
[4] http://www.brokernews.com.au/news/breaking-news/home-renovations-set-to-boom-190424.aspx
[5] ibid