Home renovations are set to boom over the next three years, according to the latest forecast published by Master Builders Australia.
“The new forecasts released by Master Builders predicts growth in the housing alterations and additions market of 14.9 per cent ($96.4 billion) in value per annum on average over the forecast period to 2016/17,” Master Builders CEO Wilhelm Harnisch.
The increase in home renovations could be the result of the emergence of a DIY culture inspired by reality television shows – such as The Block and House Rules.
Domain reported a study done by the Housing Industry Association back in 2011 when this phenomenon began to emerge. The study found that each time a new series of The Block was aired, spending on renovations was boosted by $251 million.
HIA Economist, Andrew Harvey told Domain, ''The model suggests that an airing of The Block in any particular quarter causes a statistically significant boost to renovations six months later.”
The boom in renovations comes as more good news for the construction industry, as the industry has also seen a lift in new building activity. According to the latest of ANZ
’s Job Advertisement Series, job advertising increased in July. Warren Hogan, Chief Economist at ANZ
, said the strength of the housing market has helped to improve labour demand.
“Housing indicators continue to show solid momentum. House prices and auction clearance rates have picked up recently, and building approvals remain elevated, suggesting there is still a substantial pipeline of work in the residential construction sector that should see activity continue to expand at a solid clip over the next year or so.” Hogan said.
According to the forecast by Master Builders Australia, the Northern Territory is set to experience the strongest growth, with average yearly growth of 27.8%, up from an average of 9.7% over the previous three years.
Not that far behind are New South Wales and Western Australia with per annum average growth predicted to be up 19% and 18.6% respectively.