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{{propApi.successMessage}} {{region}} Change locationHousing targets remain as important as ever
Housing targets remain as important as ever
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The ABS today released its Building Activity data for the June quarter 2026. This data provides preliminary estimates of the value of building work and number of dwellings commenced, completed and under construction across Australia and its states and territories.
“Victoria commenced construction on 57,550 new homes in 2025/26, 2.8 per cent up on the previous financial year and the strongest in four years,” added Mr Ryan.
"These numbers show the momentum that was built into the new home market through 2025 and into the beginning of this year.
"Interest rate cuts in 2025, strong population growth and tight labour market conditions helped bring more households back into the new home market.
"But this data is looking backwards. The decisions that resulted in these homes commencing construction were made months earlier, when market conditions were much more favourable.
"The ABS tells us what builders were doing yesterday. HIA New Home Sales tells us what they are likely to be doing in the future.
"Fewer people have been visiting display villages, and the number of contracts being signed for new builds has already fallen almost 20 per cent in the latest few months.
“Given the lags inherent in construction, builders will have several projects in their existing pipeline on which to continue working but those projects won’t last long.
“Unfortunately, Victoria’s recovery was much younger and more tentative than the rest of the country, leaving the industry far more vulnerable to this year’s adverse developments.
“The result will be fewer homes than otherwise built across Victoria, at a time when the state’s underlying housing needs continue to grow.
“Recent policy missteps will do nothing to diminish demand for housing from the growing number of households still forming across the country but will see fewer homes built.
“HIA estimates Victoria will commence construction on less than 660,000 homes in the coming decade, well short of the 800,000 target set by the Victorian government.
“If Victoria is to meet its housing requirements, all tiers of government – and all parties contesting the November state election - need to commit to reducing the costs of land and construction, lowering property taxes and red tape, boosting industry skills and fast-tracking building planning and approvals” concluded Mr Ryan.
HIA’s Victorian Election Policy Agenda, Builders Want to Build, calls on all parties to reduce regulatory burdens on builders, lower property taxes, expand land supply, fast-track planning approvals, strengthen the construction workforce and support greater housing choice across Victoria.
For more information please contact:
Housing targets remain as important as ever
“Housing commencements rose in the year to June 2026, but the latest data reflects yesterday's market, not the conditions facing builders today,” stated HIA Executive Director, Keith Ryan.
Housing target shortfall an $11 billion black hole for states and territories
New data from the Housing Industry Association (HIA) has shone a light on the consequences of Australia falling behind on progress against the National Housing Accord, following the release of today’s ABS building activity data for the first two full years of the 1.2 million homes target.
Could data centres be builders next inflationary hit
Australia’s growing data centre sector is creating a significant new source of construction activity and opportunities for the industry.
Coalition migration measures recognise housing supply depends on workforce capacity
The Housing Industry Association (HIA) has welcomed the Coalition's commitment to a skills-first migration approach and the establishment of a dedicated construction visa strike team, saying the measures recognise the critical role workforce capacity plays in addressing Australia's housing shortage.