Treasury and housing industry predict “bloodbath”

“Our industry is facing a bloodbath; there is simply no other way to describe it.” [1]

These are the words of Master Builders Australia, which today released its forecasts showing housing construction is expected to plummet this financial year from 170,622 to 124,560 – a 27 per cent collapse.
This is even worse than the Treasury predictions revealed on Friday afternoon that forecast a drop from 170,000 to 140,000.
It’s also worse than the predictions released last week by Housing Industry Australia and Macromonitor which forecast a drop to as low as 125,000 new builds.

All of these lines are pointing in the same direction – down.
This is a disaster for tradies and the thousands of small mum and dad businesses that work in the housing industry. 
For months, Labor has warned that the housing industry is about to go off a cliff.
Here is the proof.
The HIA forecasts also show that 20/21 is likely to be even worse than this year.
For months, Labor has also been saying that the Government’s HomeBuilder Scheme is not enough to stop to stop the fall and thousands of tradies losing their jobs.
Here is the proof.
Instead of putting a guard rail at the top of the cliff, the Morrison Government has put a mattress at the bottom.
The Government has ignored our repeated warnings, but they can’t ignore this.
Unless the Government takes action the only thing a lot of tradies will be building in the next few months is a longer line outside Centrelink.
The HomeBuilder Scheme is just one tenth of the size of the housing construction stimulus plan that Labor put into place during the Global Financial Crisis.
The major investment Labor made in social housing during the GFC helped to save tradie jobs, keep the economy out of recession and put a roof over the head of Australians who really needed them.
Labor has repeatedly called on the Morrison Government to put together a comprehensive housing stimulus plan.
This includes:
1.            Construction of more social housing;
2.            Repair and maintenance of existing social housing;
3.            Construction of more affordable rental accommodation for frontline workers;
4.            Expansion of the First Home Loan Deposit Scheme for new builds; and
5.            Grants to first home buyers who build their first home.
[1] Master Builders Australia, Media Release “Builders Call For $5.1 Billion To Fund CommunityBuilder Grants & Extension of HomeBuilder Grants” 17 August 2020