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{{propApi.successMessage}} {{region}} Change locationACT housing approvals slump puts 2030 target under pressure
ACT housing approvals slump puts 2030 target under pressure
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ABS building approvals data show 801 dwellings were approved in the ACT during the three months to August 2026, down 49.4 per cent compared with the same period in 2025.
“Just 157 dwellings were approved in August, comprising 70 detached houses and 87 other dwellings,” Mr Murray said.
“Approvals for multi-unit dwellings, including apartments and townhouses, fell by 57.1 per cent in the three months to August compared with a year earlier. Across the first eight months of 2026, approvals for these dwellings were down 31.0 per cent.
“The ACT is heavily reliant on multi-unit projects to deliver new housing. When this segment slows, the consequences for overall housing supply are substantial,” Mr Murray said.
“Detached house approvals have been relatively stable throughout 2026, albeit at relatively low levels by historical standards.
“Fewer homes entering the pipeline today means fewer opportunities to expand housing supply in the years ahead.
“Rising interest rates and the prospect of further increases are undermining confidence among prospective home buyers. Cost of living pressures are also making it harder for households to save a deposit and commit to a new home.
“Changes to negative gearing have pushed investors out of the housing market. Although eligible new builds retain access to negative gearing, the broader deterioration in investor confidence has sapped demand for new housing.
“Investors are an important category of buyer for many multi-unit developments. Their purchases help secure the pre-sale commitments needed by developers to obtain finance and commence construction. Losing these buyers can mean projects are delayed or fail to proceed.
“These pressures have been compounded by the ban on new borrowing by self-managed superannuation funds to purchase residential property, further narrowing the pool of potential buyers.
“With rising interest rates and Federal Government policy changes working against housing supply, there is even greater pressure on the ACT Government to reduce the costs and barriers holding back new housing projects.
“Achieving the ACT’s target of 30,000 new homes by 2030 will require a sustained increase in building activity. These figures show the pipeline is heading in the wrong direction, making action to support new housing supply increasingly urgent,” concluded Mr Murray.
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