While an enormous number of homes are currently being built, the number of new homes being sold is trending down, according to the Housing Industry Association.
The HIA has reported that new home sales in October were 22.8% lower than the month before.
HIA chief economist Tim Reardon said that was due to rising interest rates and construction costs, which has made it harder to finance the build of a new home.
“Despite the fall in sales over the past four months, there remains a significant volume of home building underway, and many homes still to commence construction. This will ensure that work on the ground remains strong through 2023,” he said.
“But it is very clear, even before the October and November increase in the cash rate start to impact on sales, that this building boom is coming to an end.”
Based on this data, Mr Reardon said the federal government’s goal of building 1 million homes in five years would be “very difficult” to achieve.