Building approvals

No bounce back in the housing data, by number. It is quite dire.

By number, we are running at decade lows. This is especially problematic given a rising population, particular since borders have reopened.

The solution would be to build more housing. The pricing signal is there, but the profit signal is not. Builders are (as they articulate) too exposed to price risk, as input costs move around, but can’t reprice to the final user (not easily, anyway).

That is a very general outline of the issue, which has complexity spanning regulation, zoning, special interest groups, and more.

We scarcely know what to make of it ourselves, in terms of solutions, other than noting the obvious number of builders going belly up, the raw material input suppliers who have seen their profits crunched, and the developers who are, at best, a mixed bag.

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