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{{propApi.successMessage}} {{region}} Change locationHome building falls to almost 30 per cent below Government's target
Home building falls to almost 30 per cent below Government's target
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The ABS today released its Building Activity data for the March quarter 2026. 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.
“Despite still falling short of target, housing commencements were 12.0 per cent greater than the 176,230 recorded a year earlier,” added Mr Devitt.
“There were 48,010 new dwellings that commenced construction in the first three months of 2026, down by 11.2 per cent on the previous quarter. The decline in the commencement of new home starts in the March quarter of 2026 preceded the impact of rate increases, global uncertainty or the Federal Budget and likely reflects quarterly volatility.
“Home building had good momentum heading into 2026, picking up on the back of declining interest rates, low unemployment and existing shortages of housing across the country.
“Jurisdictions like Western Australia, Queensland, South Australia and the Northern Territory have been leading the national improvement in home building volumes and have a significant pipeline of new sales ready to commence. This will help smooth out on-the-ground activity through this year’s volatility.
“The southeastern state and territory recoveries have been delayed and are more vulnerable but as long as recent disruptions are short-lived, strong population growth and tight labour market fundamentals should support activity here too.
“This trajectory will not be sufficient to meet the Housing Accord Target, and Australia’s housing needs are even greater than this.
“Australia needs to meet housing demand not only from population growth but also shrinking household sizes, increasing knockdown-rebuild activity, ageing population and increasing dependence on overseas migrants who tend to live in smaller households.
“HIA estimates 250,000 home builds each year are required on a sustained basis to meet these demands and start addressing the pre-existing shortage of housing across the country.
“Achieving this depends on governments reducing the cost of delivering new homes to market.
“This includes reducing taxes on housing, not increasing them. Housing is one of the most heavily taxed items in our economy along with the ‘sin taxes’ of alcohol and tobacco,” concluded Mr Devitt.
1.2 million homes: actual and target, by quarter
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Update: contracts signed before 1 July 2026 and optional cover
HIA will continue to update you as we receive further advice and information on the ongoing transition from Domestic Building Insurance (DBI) to the First Resort Home Warranty Scheme (FRHWS).
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