Data from the Housing Industry Association’s Autumn 2015 edition of Renovations Roundup
expects renovations activity to drop by 2.8% during 2015, before a predicted 8.2% increase between 2015 and 2018.
The rise is expected as a result of "low interest rates and the gradual recovery of economic activity", according to the HIA.
“While new home building hit record levels during 2014, the renovations market continued to struggle,” explained HIA senior economist Shane Garrett.
“This represented a continuation of the slump which has blighted the sector since 2011.
“Over the past three years, the volume of renovations activity has dropped by 15%.”
Garrett said South Australia’s performance was typical of the national trend with renovations activity declining from $2.10 billion to $1.78 billion over the 2012-13 period.
“The importance of the home renovations market is often underestimated,” he said.
“The renovations sector accounts for over one third of all residential construction activity and about 2% of GDP.
“The deceleration of wages growth to its lowest rate in almost two decades has also challenged the renovations sector.”