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
rba ellis