Antipodean Housing Deep Dive

Prices growing, construction shrinking

This is the second edition of out Antipodean Housing Deep Dive chartbook. We hope you find it useful and thought provoking.

There are several common themes across the Australian and New Zealand housing markets.

1. Housing prices are rising moderately in both Australia and New Zealand.

2. Real dwelling prices and housing price-to-income ratios remain below previous peaks.

3. Mortgage repayment affordability remains stretched amid relatively high interest rates but accumulated savings since 2020 have (temporarily) assisted deposit affordability.

4. Leading indicators of residential construction have weakened sharply, though builders are still working through backlogs of work, particularly in Australia.

5. New housing demand will remain depressed until interest rates start to decline.

6. Home rental markets are tight and rents on newly leased properties are rising quickly.

The in-depth chartpack is attached for paid subscribers.