Housing supply sliding backwards worsening crisis

Statement from Master Builders Australia CEO Denita Wawn

11 September 2026

Following new modelling showing yet another setback for housing supply, Master Builders Australia has said today that its beggars’ belief that a country as rich in land, resources and expertise as Australia is struggling to deliver the homes, infrastructure and buildings to a level that is needed.

Tradies are equally as frustrated with the current policy direction that has seen employer apprentice incentives cut, and changes that will see housing supply and construction jobs fall, while action remains slow on fixing actual supply barriers.

Across Australia:

• The National Housing Accord target of 1.2 million new homes by the end of the decade is already 88,800 homes behind. As the chart below shows, the gap continues to widen at a concerning rate;
• The construction workforce is projected to be almost one million workers short by 2035;
• Regulation is adding up to $320,000 to the cost of a new home; and,
• The National Construction Code and skilled migration system remain unfit for purpose.

Initial independent modelling released after the Budget estimated the Government’s housing policies would result in 8,700 fewer homes being built over the next four years. The updated analysis released this morning shows that figure has blown to 10,700 fewer homes following the Government’s deal with the Greens to restrict self-managed super funds from investing in the sector.

At the same time, the proposed trust changes are creating further uncertainty across the building and construction sector and risk slowing housing delivery even more.

The priority must be taking down genuine supply barriers not putting up more.

Multiple inquiries, reports and reviews have already identified the solutions. Governments need to put the right policy settings in place and then allow builders and tradies to get on with the job, supported by the workforce they need, fewer unnecessary regulations, a better investment environment and a National Construction Code, skilled migration and domestic apprenticeship system that actually delivers.

The current policy direction as shown by the modelling will result in fewer dwelling starts, reduced investment in new housing supply and added pressure on renters not to mention 4,700 less construction jobs and $1.05 billion less in GDP.

Media contact: Dylan Hafey, Adviser, Media & Government Relations

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