Appliance retailers will see a reduction in new-home fit-outs this year, as the Australian residential building sector gears up for its worst year in over a decade.

The Housing Industry Association’s latest Economic and Industry Outlook Report said construction has dropped after a series of nine consecutive interest rates, and will continue to fall as the cash rate hikes continue.

“There was a large volume of work in the pipeline when rates started to rise in May 2022, and there remains a record number of homes under construction, but this will shrink quickly as market confidence continues to fade,” HIA chief economist Tim Reardon said.

“Lending for the purchase or construction of a new home had already fallen to its lowest level since 2012 by the end of 2022, and the full impact of last year’s rate increases is still to flow through to households.

“The number of detached houses commencing construction is set to decline this year and next to its lowest level since 2012.”

Just 109,000 housing starts are expected this year, compared to 120,000 in 2022, and 149,000 in 2021.

By 2024 the number is expected to slip below 100,000 to just 96,300.

Leading appliance retailer Winnings recently sacked as many as 100 employees, as ChannelNews revealed last week.

Competitor Bing Lee opened an 800 square metre flagstore display store late last year, in Macquarie Centre, north of Sydney CBD.

Meanwhile, both Samsung and LG are focusing on their modular kitchen appliance ranges, the Bespoke and Objet series, which are designed for complete kitchen fit-outs.

With fewer Aussies moving into new homes this year and even less in 2024, a number of retailers and manufacturers will need to revise their 2023 targets.