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30 July 2026
Today’s ABS building approvals data reveals an underbuild totalling 47,750 homes over the last financial year compared to the National Housing Accord. The new data indicates that:
- 205,249 new homes received approval during 2025-26, compared to the 253,000 needed to catch up to the Accord target.
- Following three consecutive months of decline, June 2026 saw a 7.2 per cent gain in new home building approvals, largely due to the performance of higher density dwellings
- Major home renovation approvals dropped by 4.0 per cent in June while non-residential building approvals were down by 24.7 per cent.
Master Builders Australia Chief Economist Shane Garrett said the approvals trend has been heading downwards over recent months.
“The big message from today’s figures is that 47,750 fewer homes were built over the year compared with what we needed, and marks two consecutive years of Accord target shortfall.
“Earlier this week, the Reserve Bank Governor confirmed that the housing market is weaker as a result of higher interest rates and recent government policy changes. Interest rate hikes also have a knock-on effect for non-residential work. We need to restore favourable conditions for the sector and the country,” said Mr Garrett.
Master Builders Australia CEO Denita Wawn said every available housing supply lever must be pulled to make both renting and buying a home more affordable.
“Reducing construction costs, lifting productivity and addressing workforce shortages are essential if we are to build the homes, infrastructure and community facilities Australians need.
“Governments must address the underlying costs of construction. Building a new home is now almost 50 per cent more expensive than it was before the pandemic, while regulatory costs are adding up to an estimated $320,000 per new house according to the Productivity Commission.
“We are in the midst of a housing supply crisis, we have an Olympics construction surge on the horizon, and we need more infrastructure, schools and hospitals. Now is the time to get construction policy right and affordability back on track. We can’t kick the can down the road until the next budget,” said Ms Wawn
Media contact: Dylan Hafey, Adviser, Media & Government Relations
0497 330 064 | dylan.hafey@masterbuilders.com.au