Australia’s slow home-building sector is limiting housing supply, contributing to high property prices and rental shortages. This issue is particularly important as the Reserve Bank of Australia (RBA) meets to consider a potential interest rate cut. Lower rates could stimulate borrowing and investment in housing, but construction delays—due to labor shortages, material costs, and regulatory hurdles—may continue to hinder supply. This bottleneck affects economic growth and housing affordability, making it a key concern for policymakers.

Nearly three out of four economists and expert commentators (27 out of 37 individuals), surveyed as part of Finder RBA Cash Rate Survey, forecast a 25-basis point cut by the Reserve at next Tuesday’s meeting.

This would bring the policy rate to 4.10% (down from the current 4.35%) – the RBA’s first rate drop in five years.