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Private investors drive stronger new home building

private-investors-drive-stronger-new-home-building

11 February 2026

Today’s Australian Bureau of Statistics data on new home building loans demonstrates that private housing investors continue to underpin home construction across Australia, according to Master Builders Australia (MBA).

Analysis of the new data by MBA Chief Economist Shane Garrett revealed that during the December 2025 quarter, the number of loans for new home construction jumped by 9.2 per cent and there was a 2.4 per cent rise in loans for the purchase of newly built dwellings.

“During the December quarter, investors accounted for 45.3 per cent of new home building loans and 41.7 per cent of land purchase loans.

“First Home Buyer lending also grew briskly (+6.7 per cent) during the final quarter of 2025, spurred on by expanded federal government support,” said Mr Garrett.

MBA CEO Denita Wawn explained demand from investors is crucial in bringing more new homes into existence and driving us closer to the National Accord Target.

“Major private investment is vital to getting more and more projects off the ground to meet the Accord’s target of 1.2 million new homes before the end of the decade.

“The Federal Government needs to protect the current policy settings so that investment in housing is not disadvantaged compared with other asset classes.

“The current debate misses the point that any Capital Gains Tax discount reductions would decrease private investment, leading to less new builds, less rental properties and higher rents,” concluded Ms Wawn.

Media contact: Dylan Hafey, Media Advisor

0497 330 064 | dylan.hafey@masterbuilders.com.au

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