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{{propApi.successMessage}} {{region}} Change locationHousing starts rise but still below target
Housing starts rise but still below target
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The ABS today released its Building Activity data for the September quarter 2025. This data provides estimates of the value of building work and number of dwellings commenced, completed and under construction across Australia and its states and territories.
“Dwelling commencements in the 12 months to September 2025 increased by 11.2 per cent compared to the previous year to 184,460,” added Mr Tapang.
“The volume of home commencements remains below the 240,000 new homes per annum needed to build to the Australian Government’s target of 1.2 million homes over five years. They also remain below the average volume commenced over the past decade.
“These are positive signs that confirm our expectation that the number of homes commencing construction will see steady, not explosive, growth over the next couple of years.
“This growth is expected to come from a resurgence in apartment construction. Apartment construction remains well below the volume commencing construction a decade ago and is one of the of keys to increasing supply.
“In order to increase the supply of homes, governments need to help lower the cost of delivering new homes to market.
“Demand is not the challenge. Delivery is. Land supply, infrastructure timing, planning bottlenecks and workforce capacity will shape the 2026 experience more than interest rates.,” concluded Mr Tapang.
New Home Commencements, Moving Annual Total, Australia
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Productivity roadmap welcomed, time to tackle local government barriers
The Housing Industry Association (HIA) has welcomed the Queensland Productivity Commission’s (QPC) Final Report as a vital blueprint for improving housing supply and affordability. However, HIA warns that the State Government’s refusal to tackle local government planning barriers threatens to derail the entire reform agenda.
Housing starts rise but still below target
“Lower interest rates have seen the volume of new homes commencing construction increase, but they still remain well below the government’s target,” stated HIA Senior Economist, Maurice Tapang.
Strong rebound in ACT apartment starts
The latest dwelling commencements data released by the Australian Bureau of Statistics today shows a sharp pick-up in multi-unit residential construction activity in the ACT.
Pre-sale Finance Guarantee: a policy so good, we increased our forecasts
“It is good to see the NSW Government taking action to address the chronic undersupply of housing in NSW,” said Brad Armitage, HIA Executive Director NSW.