House construction is lagging behind planning approval, with more than 37,000 homes yet to be built across Australia due to high interest rates and material costs.House construction is lagging behind planning approval, with more than 37,000 homes yet to be built across Australia due to high interest rates and material costs.According to KPMG analysis released on Tuesday, 15,593 dwellings with planning approval were yet to break ground across New South Wales by December 2023.
“Sometimes people also forget that interest rates also impact on the developer side as well – it means they can’t borrow as much to get the projects up and running.” “For the preceding 20 years we had a very stable construction sector, materials costs and interest rates. But Rawnsley said it would take several years for each state’s reforms to flow through to the market.