Home renovations have hit a record high, sealing 2018 as the Year of the Reno for Aussie families.
Latest Australian Bureau of Statistics data found private investment in alterations and additions surged to a historic high of $9.896 billion across the country in the September quarter, 11 per cent higher than a year ago.
The Sunday-Mail found Queenslanders sunk a whopping $1.851 billion into renovations, the highest they have done since the last major Australian housing boom in the early 2000s.
All signs were pointing to this figure rising further as a national credit crunch takes hold, according to Master Builders Australia chief economist Shane Garrett.
“The tightening of credit conditions have prevented many families from being able to move house over the past year. It seems that some of those have decided to renovate their existing home instead.”
He said “Australia’s home renovations industry may be an unintended beneficiary of the tougher lending policies”.
“Looking further out, we are almost certain to see further gains for home renovations. More detached houses were built in late 1980s Australia than at any time before or since. More and more of these will be begging for major renovations work in the coming years.”
The September quarter gross fixed capital formation figures showed dwelling investment had the biggest growth year-on-year (+7.1 per cent), with private new and used dwellings hitting $18.879 billion, the second highest level it has ever been, with the top notched in the June quarter ($18.907b seasonally adjusted).
Mr Garrett said the September quarter was home renovations’ busiest in 14 years.
“Times have often been tough for Australia’s home renovations market over the past decade but today’s figures show that the market is now bigger than at any time since mid-2004.”