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{{propApi.successMessage}} {{region}} Change locationPolicies threat to improving new housing market
Policies threat to improving new housing market
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The ABS released its Lending Indicators data for the June quarter 2026 today, which provides the latest statistics on borrower-accepted housing finance commitments.
“The rise in interest rates and changes in taxation policy this year threaten to slow the recovery in borrowing for new housing,” added Mr Devitt.
“Owner occupier and investor loans for new housing increased by 3.0 per cent and 4.2 per cent respectively in the June quarter 2026.
“Over the financial year, there were 55,290 new housing loans to owner occupiers in 2025/26, a 5.3 per cent increase on the previous year, together with 41,550 investor loans, a 12.7 per cent increase.
“Demand for housing was recovering heading into 2026, on the back of strong population growth, low unemployment and ongoing shortages of housing across the country.
“Negative developments this year are likely to affect this data with a lag.
“Three interest rate increases, combined with the shock to confidence produced by Budget tax increases, are more likely to become visible in the data in the second half of the year.
“The data so far reflects household and business decisions that were made earlier in the year.
“The effect of recent Budget tax increases on investors is going to be very important to watch, given the increasing importance of investors in the housing recovery.
“We have already seen a dramatic decline in the number of loans for investors in the established dwelling market, down almost 20 per cent in the last six months.
"The slowdown in the established housing market will also impact confidence in new home building.
“Both mum and dad and business investors had become an increasing share of new home lending in recent years, while owner occupiers were more nervous.
“The value of dwelling construction loans issued to businesses increased by 51.0 per cent in 2025/26 to $23.3 billion, while household investors increased by 19.4 per cent to $22.0 billion.
“Self-managed superannuation funds (SMSFs) that borrow to purchase a residential property are classified under business finance and form part of the $23.3 billion in construction loans issued to businesses in 2025/26.
“Investors are crucial to addressing the housing undersupply. They add to rental supply and net dwelling stock, while adding nothing to housing demand.
“Mum-and-dad investors, SMSFs and businesses cannot live in homes. Banning SMSFs from borrowing to build a new home and increasing taxes on investors leads to fewer homes built.
“Policies that increase the cost or risk of investing in housing do not resolve that shortage - they make it worse.
“Australia’s housing affordability problem is fundamentally a shortage of homes compared to the number of aspiring households. It can viewed as if we are trying to fit 11 million households into 10 million homes.
“Government housing policy needs to be viewed through a simple question: does it result in more homes being built?” concluded Mr Devitt.
The number of owner-occupier loans issued nationally for the purchase and construction of new homes increased by 5.3 per cent in the 2025/26 financial year to 55,290. Every jurisdiction saw an increase in the financial year, led by the Northern Territory (+15.3 per cent), Tasmania (+13.2 per cent) and Western Australia (+12.0 per cent), followed by the Australian Capital Territory (+8.2 per cent), New South Wales (+6.9 per cent), South Australia (+5.5 per cent), Victoria (+2.7 per cent) and Queensland (+1.1 per cent).
The number of investor loans issued nationally for the purchase and construction of new homes increased by 12.7 per cent in the 2025/26 financial year to 41,550. Every jurisdiction saw an increase, led by Tasmania (+70.8 per cent), followed by the Australian Capital Territory (+22.8 per cent), Queensland (+15.9 per cent), Victoria (+11.9 per cent), Western Australia (+11.5 per cent), New South Wales (+11.2 per cent), the Northern Territory (+8.2 per cent) and South Australia (+7.6 per cent).
Lending for new dwellings
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Policies threat to improving new housing market
“The number of loans issued for the construction or purchase of new housing increased in the June quarter 2026, for both owner occupiers and investors,” stated HIA Senior Economist, Tom Devitt.
New Sydney Plan welcomed by HIA
“HIA welcomes the finalisation of the new Sydney Plan which provides a 20-year framework for the future development of Sydney,” said Brad Armitage HIA NSW Executive Director.
Housing industry urges Government to keep SMSF finance flowing to new homes
The housing industry is calling on the Australian Government to allow self-managed super funds (SMSFs) to continue borrowing to build new homes, at least until the impact of its new borrowing restrictions on housing supply is independently assessed and made public.
Bragg NCC plan puts spotlight on need to stop the regulatory escalator
“HIA welcomes Senator Andrew Bragg putting National Construction Code reform squarely at the centre of the housing affordability and productivity debate,” said HIA Chief Executive – Industry & Policy, Simon Croft.