Home stretch: Australia's rising population is anticipated to return the industry to growth

Home ownership provides financial and emotional security, and often represents the largest investment an individual will make in their lifetime. However, homebuyers are increasingly opting for higher-density dwellings such as apartments and townhouses. Businesses in the House Construction industry build new detached low-density dwellings, or renovate and repair existing homes.Over the past five years, rising house prices have resulted in more home buyers opting for higher density dwellings, such as apartments and townhouses, constraining demand for industry services. Industry revenue is expected to decrease at an annualised 0.4% over the five years through 2019-20, to total $56.0 billion. This includes a decline of 4.6%...read more.

Industry Statistics & Market Size
Revenue
$56bn
Annual Growth 15-20
-0.4%
Forecast Growth 20-25
Profit
Employment
80,100
Businesses
44,535
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Shifting consumer preference towards high-density living has reduced demand for single-unit housing
  • Rising house and land prices have discouraged investment in single-unit house construction
  • Household discretionary income will rise at a moderate rate, supporting spending on home renovations
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is currently in the mature stage of its life cycle. The industry's share of the total residential building market is falling due to the long-term shift in housing preferences towards multi-unit apartments and townhouses. The industry is largely confined to the domestic market, with export potential focused in related markets constructing apartments, condominiums and portable buildings.The industry has lost market share to the Multi-Unit Apartment and Townhouse Construction industry, as shown through the industries' respective shares of housing commencements. Multi-unit apartments and townhouses have climbed as a share of commencements from below 30% in the early 2000s to a record peak at 50.2% in 2015-16, before easing back to approximately 44.9% o...purchase to read more.

    Additional Insights for the House Construction Industry

    IBISWorld has determined the most important Key Success Factors for the House Construction are:

  • Membership of an industry organisation
  • Access to highly skilled workforce
  • Having a high prior success rate (including completed prior contracts)
  • IBISWorld analysts also discuss how external factors such as Dwelling commencements and Mortgage affordability in the House Construction industry impact industry performance..

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    What's in this report

    What is the House Construction Industry?

    Industry firms primarily construct houses (excluding multi-unit apartments and townhouses) or carry out alterations, additions, renovations or general repairs to houses. The industry also includes operators that organise and manage these activities as the prime contractor.

    Industry Products
  • New housing construction
  • Alterations, additions, renovations and improvements
  • Housing repairs and maintenance
  • Other services
  • Industry Activities
  • House building
  • House alteration, renovation and general repair
  • Prefabricated house on-site assembly, erection and installation
  • Project management
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Dwelling commencements
  • Mortgage affordability
  • Residential housing loan rates
  • Number of households
  • Residential housing prices

  • Current Performance
  • Profit
  • Industry participation
  • Competition
  • Subsidies and demand
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability improves
  • Demand drivers
  • Table: House Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - House Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Residential Property Operators
  • Central Government Administration
  • State Government Administration
  • Consumers

  • Key Selling Industries
  • Clay Brick Manufacturing
  • Farm and Construction Machinery Wholesaling
  • Hardware Wholesaling
  • Machinery and Scaffolding Rental
  • Ready-Mixed Concrete Manufacturing
  • Timber Wholesaling

  • Products & Services
  • New housing construction
  • Alterations, additions, renovations and improvements
  • Housing repairs and maintenance
  • Other services
  • Chart: House Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private homebuyers
  • First-home buyers
  • Property developers and speculators
  • Public sector
  • Chart: Major Market Segmentation for the House Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs House Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the House Construction Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the House Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the House Construction Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dwelling Commencements
  • Dwelling commencements indicate the number of times contractors commence construction of a building, with each unit in a multi-dwelling building counting as a separate commencement.
  • First Home Owner Grant (Fhog)
  • A scheme that provides state funding for eligible first-home buyers in the form of a non-means tested grant towards the purchase of a home.
  • Mortgage
  • Legal contract through which a financial institution (bank, building society etc.) lends money at interest in exchange for holding the title on the borrower's property.
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    Why buy this report?

    The House Construction market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on House Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The House Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on House Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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