The significance of the housing market – from property in Adelaide to elsewhere in Australia – has been brought up by the Housing Industry Association (HIA) in an April report.
Housing: Paving the Road to Recovery highlights the importance of new home building activity, which typically has “strong links with the broader non-mining economy, most notably household consumption expenditure and employment growth”.
The board of the Reserve Bank of Australia has alluded to a decline in mining investment in the December quarter in a release of its minutes. However, other sectors are showing strong growth, with housing market conditions remaining strong.
According to the HIA, “the Australian Economy is currently at an important juncture. The mining investment boom is waning and in its wake the lingering fallout from the first and second iterations of the [global financial crisis] has been exposed.”
That said, recovery in the new home building industry shows “potential for growth in household consumption expenditure,” according to the HIA. Such growth is important for non-mining economic recovery.
Residential construction also has favourable links to the labour market, a point touched upon by the HIA.