{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics Insights Data & forecasts Tailored research & analysis Advocacy & policy Advocacy Policy priorities Position statements Submissions News & inspiration Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
For your business Contracts Online Safety systems & solutions Advertise jobs HIA SafeScan Member perks Toyota vehicles The Good Guys Commercial Ampol fuel savings See all Industry insurance HIA Insurance Services Construction works insurance Home warranty insurance Tradies & tool insurance Apprentices Why host a HIA apprentice? Hire an apprentice Support & guidance Contracts & compliance support Building & planning services
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials & products Concrete, bricks & walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer How do I apply? Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand Professional development courses A job in the industry Get your builder's licence Continuing Professional Development (CPD) Further your career Find jobs
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Mates rates Our podcasts Made To Build Built Different HIA Building Australia Building the Hunter Our initiatives HIA Building Women GreenSmart Kitchen, bathroom & design hub Get involved Become an award judge Join a committee Partner with us Support for you Charitable Foundation Mental health program Get to know us Our members Our people
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program People & Business Awards GreenSmart Australian Housing Awards Awards winners Regional Award winners Australian Housing Award winners 2025 Australian Home of the Year Enter online Industry events Events in the next month Economic outlook National Conference Events calendar
HIA shop
HIA shop $vuetify.icons.faArrowRight
Most popular products National Construction Code Vol 1 & 2 Waterproofing wet areas AS 3740:2021 HIA Guide to Waterproofing HIA Guide to NCC Livable Housing Provisions Top categories Building codes & standards Contracts & documents Guides & manuals Safety products Signage For your business Contracts Online Digital Australian Standards Digital Resource Library Forecasts & data
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

ACT housing outlook remains bleak

Media release

ACT housing outlook remains bleak

Media release
“Detached home building in the nation’s capital is constrained, sitting at record lows, with the current affordability crisis expected to persist for years,” stated HIA Executive Director, Greg Weller.

HIA has released its latest Economic and Industry Outlook report, which includes updated forecasts for new home building and renovations activity nationally and for each of the eight states and territories.

“There were just 880 detached houses that commenced construction in the 2023/24 financial year, the weakest year since the ABS began records in 1969/70,” added Mr Weller.

“Land prices are prohibitively high and supply constrained within the ACT for this kind of housing product. This will likely remain a major constraint on buyers, keeping activity in the next cycle below the peaks of previous cycles.

“Nonetheless, demand for lower density housing remains high in the region with many families simply choosing to live across the border in NSW.

“Perhaps it is time for the ACT to rethink its policies around density. If detached housing development is occurring in NSW, but the occupants are effectively Canberrans through their employment, then this negates much of what the ACT policies are trying to achieve.

“It is putting more motor vehicles on the road for longer, and the ACT is also losing revenue from rates, vehicle registration and other taxes to NSW.

“This is why we recently called on the next ACT government to increase the horizon of its Indicative Land Release Program (ILRP) to 15 years, to provide more certainty around the forecast pipeline of shovel ready land.

“The current five years is inadequate for city planning, and there is limited transparency around performance.

“With higher density development doing most the heavy lifting in the ACT, there is some good news with an estimated 3,432 multi-units commencing construction in 2023/24. 

“This represents an increase 27 per cent over the 2022/23 number of starts, though this is tempered somewhat by the fact that last year saw the lowest number of units come out of the ground in a decade.

“Medium density also remains notably absent from the local housing mix. There were 110 semi-detached dwellings approved in the June quarter 2024, which is 0.9 per cent lower compared to the previous quarter and 7.0 per cent lower compared to the same time in the previous year. 

“This leaves semi-detached approvals in the financial year 2023/24 at 560 in total, which is 28.8 per cent lower compared to the previous financial year. 

“This ‘missing middle’ has great upside potential in the ACT, if policy were to support it with more amenable planning system and changes to the current punitive local tax system.

“There has also been a surge in the number of already-approved projects that have stalled before commencement, driven by material cost blowouts and interest rate rises over the last few years, and also the ongoing shortage of skilled tradespeople across the construction sector.

“The underlying demand for housing is clearly present in the ACT, evident in elevated housing prices and still-tight rental markets,” concluded Mr Weller.

Detached houses: The ACT saw 220 detached houses commence construction in the first quarter of 2024, up by 9.0 per cent on the previous quarter. This is forecast to pick up again by 17.1 per cent to 260 in the June Quarter 2024, producing a financial year total of 880, down by 28.5 per cent on the previous year and a new record low for the sector. From this trough, an 18.2 per cent improvement is forecast to 1,040 in 2024/25, continuing to a peak of 1,390 by 2027/28.

Multi-units: The ACT commenced construction on 1,010 multi-units in the first quarter of 2024, up by 35.7 per cent on the previous quarter. This is forecast to moderate back to 690 in the June Quarter 2024, producing a financial year total of 3,430, up by 26.8 per cent on the previous year. These approximate levels are forecast to be maintained, moderating down by 3.5 per cent to 3,310 in 2024/25, before strengthening over the subsequent years, back towards 3,390 by 2027/28.

For more information please contact:

Greg Weller

Executive Director - ACT/Southern NSW
Latest articles
View all news $vuetify.icons.faArrowRight
19 Jun
Population data highlights contradiction in government policy

“Australia’s population reached 27.4 million by the end of 2024, up by 445,900 people, or 1.7 per cent for the year,” stated HIA Senior Economist, Tom Devitt.

19 Jun
Tasmanian Election - Stadium or no stadium we still need housing

The Tasmanian election that no-one wanted to have is in full swing, and while the limited campaign period is unlikely to provide the usual platform to promote key policies and reforms, HIA is calling on both major parties to prioritise housing policies given the significant challenges across the state.

19 Jun
‘Getting Keys in Doors’ shouldn’t be this difficult

“Our dated and complex planning system is littered with speed bumps that could easily be removed”, said Brad Armitage, HIA NSW Executive Director.

18 Jun
New home building contract laws welcomed by HIA

“The Victorian government’s proposal to update home building contract laws to make them fit for use in the 21st century is welcomed by HIA,” stated HIA Executive Director, Keith Ryan.