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1 September 2026
Today’s ABS Building Approvals data for July shows new home building approvals fell by 3.6 per cent during the month, with reductions in both higher-density dwelling (-2.4 per cent) and detached house approvals (-4.5 per cent). The value of non-residential building approvals rose by 14.4 per cent.
Master Builders Australia CEO Denita Wawn said the challenges facing builders continue to mount, with many in the industry increasingly frustrated that the Government keeps talking about housing supply while pursuing policies that make it harder to deliver it.
“The Government says it wants more homes, but its recent policy decisions are only producing more frustration in the construction sector. Tradies are feeling that recent Government decisions and proposals are making it harder to run a viable small building business.
“98 out of every 100 building businesses are small businesses. They are being asked to solve Australia’s housing shortage while Canberra continues to pile on new costs and uncertainty. The Federal Government should be backing these businesses through lower costs, greater certainty and stronger investment incentives.
“Instead of doubling down on a pro-supply construction agenda, the Government’s tax hiking policies are forecast to reduce housing supply by their own estimates. That is sending exactly the wrong signal at a time when Australia desperately needs more homes.
“Australia cannot meet its housing ambitions if approvals for both detached homes and higher-density housing are moving in the wrong direction. We need governments to stop creating barriers to investment and start delivering policies that make it easier to get homes approved and built,” said Ms Wawn.
Master Builders Australia Chief Economist Shane Garrett said today’s figures highlight the challenge of increasing housing supply in the current economic environment, with July being the first month since October 2025 in which both categories of home building approvals dropped simultaneously.
“New dwelling costs have risen by 5.7 per cent over the past year, while rental inflation remains elevated at 3.6 per cent. Rising construction costs, combined with ongoing uncertainty across the market, are calling many projects into question, potentially slowing new housing supply,” said Mr Garrett.
Media contact: Dylan Hafey, Adviser, Media & Government Relations
0497 330 064 | dylan.hafey@masterbuilders.com.au