The boom in construction of high density housing in the south-eastern states of Australia is refusing to die for the time being even amid a growing list of factors that should be bringing the market to its knees. Extension of the home unit building boom implies that home building activity may contribute positively to economic growth through to early-2017, but there is also a growing risk in our view that the price of this extension is increasing over-supply in pockets of the housing market and a more pronounced and extended housing downturn from mid-2017 and through 2018 detracting from growth and possibly increasing the risk of recession.