Australia's renovation market is estimated to be worth over $31 billion, according to the latest edition of Renovations Roundup released by the Housing Industry Association.
It is reported that the volume of renovation activity increased by 4.7 per cent in 2015, which is the strongest growth since 2010. In 2016, it is projected that activity will grow by another three per cent, with the pace of expansion slowing to 1.4 per cent in 2017.
Growth is expected to pick up to 2.4 per cent in both 2018 and 2019. Overall, the volume of renovations activity is anticipated to increase from $31.38 billion in 2016 to $33.37 billion in 2019, an overall expansion of 6.3 per cent.
“With new home building set to fall back over the coming years, there will be increased reliance on home renovations activity as a source of demand within the industry,” HIA Senior Economist Shane Garrett said.
“Home renovations’ demand has a lot going for it at the moment - low interest rates, a strong pace of dwelling price growth in key areas and healthy labour market conditions in the larger cities.
"Our renovations market survey also indicates that the price of houses in Sydney and Melbourne is persuading homeowners previously considering moving house to instead embark on major renovation projects in their current homes,” Mr Garrett said.
“The turnover of existing homes also generates additional renovations demand. This is important because many renovation jobs are initiated by the new buyers of aging houses.
“Overall, we anticipate that renovations activity will continue to grow modestly over the next few years and take up some of the slack that will result from weaker levels of new home building.
"With annual home renovations expenditure topping $31 billion, the sector packs quite a punch across the Australian economy."