The HIA has claimed the gloom hanging over home building looks set to continue, and has called for a "three pronged attack" to address the sector's woes.
ABS data has indicated a drop in residential building work for the September 2011 quarter, with seasonally adjusted numbers falling 1.6%. Both new building and renovations activity tapered over the quarter.
HIA chief economist Harley Dale claimed residential construction activity had been trending down for 12 months, and reissued the organisation's perennial calls for further government and RBA intervention to kick-start the lagging sector.
"A three pronged attack is required to resurrect activity in residential building, an industry which has a large multiplier impact in terms of output and employment across the wider domestic economy. There is an urgent need for further cuts in borrowing costs for both businesses and mortgage holders, short term government stimulus, and renewed action on the longer term housing policy reform front," Dale said.