Ellis is Assistant Governor (Economic) of the Reserve Bank of Australia. Construction delays and materials shortages have implications for (higher) inflation.
- Several signs imply that rents may be on the rise following a period of stagnation
- Housing supply has been outpacing usual demand
- Backlogs will eventually clear, and cost pressures will diminish
- Construction delays are widespread, and building materials are in low supply and cost more
- The residential construction sector appears to be reaching capacity
- New home construction will stay strong for the next few years
