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{{propApi.successMessage}} {{region}} Change locationStrong home building activity highlights ongoing demand for skilled trades
Strong home building activity highlights ongoing demand for skilled trades
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“The HIA Trades Report released today provides a quarterly assessment of skilled labour availability in residential construction, as well as demand pressures identified through a survey of home builders.
“Despite rising interest rates and global turmoil, home building activity picked up in the March quarter of 2026, placing renewed pressure on an already constrained skilled workforce,” added Mr Devitt.
“The HIA Trades Availability Index recorded -0.62 in the March quarter 2026, representing a deterioration in availability on top of the structural shortage of skilled trades that Australia was already experiencing.
“Higher interest rates and recent overseas events have yet to materially impact the pool of work under construction.
“These headwinds are expected to gradually weigh on demand but not derail the ongoing recovery.
“Even a modest lift in construction activity can quickly expose underlying structural labour constraints.
“Strong population growth and tight rental markets are expected to sustain demand for new housing and renovations, while low levels of unemployment mean home building continues to compete with other sectors for access to both skilled and unskilled labour.
“Public infrastructure continues to draw skilled trades away from the private sector and will increasingly do so heading into the Brisbane Olympics.
“The current environment highlights the inability of local labour supply to adjust quickly enough.
“Combined demand from private housing and public infrastructure is therefore likely to keep capacity constrained, further reinforcing the need for skilled migration and domestic workforce development, including increased support for apprentices,” concluded Mr Devitt.
Regional Victoria (-0.28) saw the most modest shortage of skilled trades in the March quarter 2026, as all markets excluding Brisbane and regional Queensland recorded deteriorations in the Index. This was followed by Sydney (-0.49), regional New South Wales (-0.52), Melbourne (-0.57) and regional South Australia (-0.59). More acute shortages persist in regional Queensland (-0.74), Brisbane (-0.83), Perth (-1.15), Adelaide (-1.33) and regional Western Australia (-1.54).
By trade, the most acute shortages remain in bricklaying (-1.36), followed by ceramic tiling (-1.03), roofing (-0.93) and carpentry (-0.90). Electrical was the only trade in ‘surplus’ with a reading of +0.03.
Donwload our latest HIA Trades Report
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