New home construction slumps to near 40-year low in Australia as renovation spending booms

Shifting some labour and materials away from renovations to construction of new housing stock could help relieve housing shortages, the report said. Photograph: Brendan Esposito/AAP

New private residential construction is at its lowest level for almost four decades but spending on renovations has boomed, according to a new analysis.

The report by KPMG found that new private residential construction spending per capita is at its lowest level since 1987-88, as renovation spending surged from 34.2% of total residential construction spend in 2018-19 to 40% in 2023-24.