New home starts to hit second-highest point on record

New home building is set to reach its second-highest level on record this year, according to the Housing Industry Association. 

The body expects new dwelling commencements to increase by 7.1 per cent to almost 180,000 in 2014, after a 10.9 per cent increase last year.

This would be second only to the 187,000 dwellings commenced in 1994, the HIA said. 

In 2013-14, 56 per cent of new dwelling starts are set to be detached houses, down from a 68 per cent share 10 years ago. Some 44 per cent of new dwelling starts will be multi-unit dwellings in 2013-14, the HIA said.

The body warned that despite a cyclical recovery in new housing that began in mid-2012, skilled labour and residential land are in short supply.