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21 January 2026
Fresh building activity data from the Australian Bureau of the Statistics (ABS) shows the construction rebound has continued into the new year, with new home building starts enjoying their best quarter since March 2022 and higher density home starts at their strongest in four years.
Master Builder Australia (MBA)’s analysis of the data shows that in the September quarter, 48,778 new homes were commenced across Australia. This was 6.6 per cent up on the previous quarter and 11.6 per cent stronger than a year earlier. In addition, over the year to September 2025, a total of 184,569 new homes were started across Australia, which is 11.1 per cent up on the previous 12-month period.
The year to September 2025 also saw a 21.1 per cent expansion in higher density dwelling commencements. New engineering construction activity figures were more of a concern, with the volume of work done for the private sector dropping by 14.2 per cent while work done for the public sector only grew by 3.8 per cent.
MBA CEO Denita Wawn said these indicators overall were a good sign however we are still well below where we were a decade ago and where we need to be if we are to meet the National Housing Accord’s target of 1.2 million new homes over five years.
“We are on record warning that the Government may again fall short for a second year in a row on their housing targets. No one wants to see that, but it is close to becoming a reality.
“The first 15 months of the Accord saw 230,658 new homes started across Australia. If we were on track to deliver the Accord target, 300,000 new homes would have had to have been delivered by now, which represents a shortfall of over 69,000 homes so far.
“This all means that about 65,000 new homes need to be built per quarter over the remainder of the Accord period and our current activity is well below this.
“Looking ahead, productivity across the economy must be improved. To have any chance of further turning this around, building and construction industry productivity needs to recover to where it was a decade ago.
“This is why this year and the next federal budget is so important; while the government must heed current economic conditions and adopt policy measures to respond to that, the delivery of not only the Housing Accord target but an unprecedented infrastructure pipeline must be supported by targeted budgetary measures to improve housing affordability and a radical red tape reduction agenda.
“We are an optimistic country, and the latest ABS building activity figures are promising however we must do more to ensure the aspirational becomes the achievable,” concluded Ms Wawn.
Media contact: Dylan Hafey, Media Advisor
0497 330 064 | dylan.hafey@masterbuilders.com.au