Home renovation activity rises The Housing Industry Association (HIA) says major renovation activity in Australia increased in value by 4 per cent in the June quarter to $851 million.
More than 10,000 households took on a project, with an average value of $84,000.
Ground floor extensions were the most popular.
The HIA says the pick-up in renovation activity will be welcomed by many building material makers and suppliers.
Yesterday, Australian Bureau of Statistics figures showed a fall of more than 2 per cent in new home construction.
HIA economist Harley Dale says many people cannot afford to purchase new homes.
"So instead they're looking at significantly extending or upgrading their existing home and that's what the renovations monitor shows continued to occur in the June quarter," he said.
"The renovations market tends to prove a little more resilient to interest rate rises than does the new home market.
"When we see a situation where housing conditions are softening they tend to soften to a lesser extent for renovations."
But Mr Dale says people are spending less on home repairs due to the May interest rate increase.
"On average people are tending to spend a little bit less on a major renovation than they were," he said.
"That's probably something that will continue in the short-term given the uncertain times that we're in at present."
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