{{ propApi.searchIcon }}
{{ 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
Support & guidance
Ask an expert Contracts & compliance support Building & planning services Australian Standards
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
For your business
Contracts Online Safety systems & solutions HIA SafeScan
Apprentices
Why host a HIA apprentice? Hire an apprentice Value for money
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right
Building codes National Construction Code Australian standards 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 Communication for 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
HIA community
HIA community $vuetify.icons.faArrowRight
Grow with us
Sign me up Become a member Member benefits Mates rates
Our podcasts
Made To Build Built Different HIA Building Australia Building the Hunter
Our initiatives
HIA Building Women Charitable Foundation GreenSmart Kitchen, bathroom & design hub
Get involved
Become an award judge Join a committee Meet our members Partner with us
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 2026 Australian Home of the Year
Industry events
Events in the next month Economic outlook HIA Made 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

80% of builders expect home building to slow after Budget decisions

Media release

80% of builders expect home building to slow after Budget decisions

Media release
“Sales of new homes declined for a second consecutive month, down by 4.6 per cent in June, as higher interest rates and policy uncertainty continue to weigh on consumer confidence,” added Mr Reardon.

The HIA New Home Sales report is a monthly survey of the largest volume home builders in the five largest states and is a leading indicator of future detached home construction. 

“The recent decline in sales reflects households becoming more cautious in response to higher borrowing costs and increased uncertainty, rather than a reduction in Australia's need for homes,” stated HIA Chief Economist Tim Reardon.

“Despite the decline since the Federal Budget, sales in the June quarter remain 4.6 per cent higher compared to the previous year, while sales in the 2025/26 financial year remain 18.4 per cent higher compared to the previous year. 

“Households continue to face the cumulative impact of three interest rate increases this year, while uncertainty surrounding recent housing policy changes has encouraged many prospective purchasers to delay, or cancel, major financial decisions. 

“The consequence of recent policy announcements is that more than 80 per cent of builders expect commencements of new homes to fall by at least five per cent. Half of these builders expect commencements of new homes to fall by more than 10 per cent.

“The prohibition of borrowing to build a new home by some superannuation funds is estimated to cause a fall in detached commencements alone by around 3.5 per cent to 5 per cent. It’s likely that the adverse impact on apartments will be much larger. 

“This month's New Home Sales report highlights a 50 per cent jump in cancellations of new home sales contracts in June compared to the previous month. This is likely due to the impact of rising interest rates constraining households borrowing capacity and conditional finance being revoked. It remains too soon for the budget decisions to have this impact on cancellations.

“Builders anticipate that a further 2,500 contracts to build a new home that have been signed by Self-Managed Super Funds will be cancelled in coming months when the Budget legislation comes into effect. “Policies that constrain new home supply, such as the prohibition on SMSF’s borrowing to building new homes announced as part of the Budget, warrant a clear policy goal and analysis.  

“The goal of building 1.2 million homes will become increasing unachievable if the government continues to restrict who can build or finance new homes.

“The coming months will show whether recent weakness in sales reflects a temporary loss of confidence or a more prolonged period of reduced investment among new home buyers,” concluded Tim Reardon.

By state, Western Australia recorded a monthly increase of 8.1 per cent, followed by South Australia remaining relatively unchanged (+0.5 per cent). Declines were observed in New South Wales (-12.5 per cent), Victoria (-9.2 per cent) and Queensland (-3.0 per cent).

Over the twelve months to June 2026, new home sales in Victoria were 29.5 per cent higher compared to the previous year, followed by South Australia (+27.4 per cent), New South Wales (+19.0 per cent), Queensland (+8.2 per cent) and Western Australia (+6.7 per cent).

Download our latest HIA New Home Sales Report

Private New House Sales - Australia (seasonally adjusted)

Source: HIA Economics

For more information please contact:

Tim Reardon

HIA Chief Economist

Thomas Devitt

Senior Economist
Latest articles
View all news $vuetify.icons.faArrowRight
09 Oct
Government delays ATO credit card payment changes

The Federal Government has announced that the Australian Taxation Office (ATO) will continue to accept credit card payments for tax liabilities until the end of the 2026-27 financial year, delaying changes that were previously due to take effect on 1 December.

09 Oct
Government provides breathing space for builders and tradies on ATO credit card ban

The Housing Industry Association (HIA) welcomes the Federal Government's stepping in and agreeing to delay the Australian Taxation Office's (ATO) proposed ban on credit card payments, providing builders, tradies and suppliers with much-needed breathing space while a longer-term solution is developed.

08 Oct
HIA Victoria not failing housing targets as badly as others is not success

The Housing Industry Association (HIA) says the Victorian results in the HIA National Housing Accord Update released yesterday, while not as poor as some other states, highlight the urgent need for a reset in housing policy after the upcoming state election.

08 Oct
HIA Safety Summit headlines National Safe Work Month

HIA’s annual Safety Summit is being held today in Adelaide (8 October) and will bring together industry leaders, regulators and workplace safety experts, providing practical guidance to help residential builders and tradies create safer worksites and support compliance in an ever-changing world.