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11 November 2026
Today’s ABS Lending Indicators data shows the number of new home loans in Australia fell by 13.2 per cent in the September quarter, the largest quarterly decline since 2002.
Owner occupier loans for home construction dropped by 14.4 per cent, while investor loans were down by11.8 per cent. First home buyer loans also declined by 8.6 per cent.
As Master Builders Australia CEO Denita Wawn said today at the National Press Club, the industry saw this coming, called it out and now we are seeing a reduction in investment in housing.
“The Federal Government’s policy settings clearly aren’t having the intended effect on housing supply. It’s time for a policy reset, the sooner the better. Otherwise, if we keep drifting along like this we’re going to be faced with an even bigger housing supply shortfall in a couple of years’ time.
“Today’s ABS data shows investors, owner occupiers and first home buyers are all being squeezed. That is bad for tradies and their forward books, but also for the mums and dads who simply want to build and own their own home.
“Australia needs new policy settings that generate the homes, infrastructure and buildings our communities need now and into the future, not one that is causing industry paralysis.”
Master Builders Australia Chief Economist Shane Garrett said the sharp decline in housing finance points to a weaker pipeline of projects.
“This will mean weaker approvals, commencements and completions down the track.
“While lending to investors increased slightly when construction and purchase loans for new builds are combined, that modest rise was overwhelmed by the broader reduction in housing finance.
“Without policy settings that encourage investment and reduce the cost of delivering new projects, these figures will make it even harder to improve affordability.”
Media contact: Dylan Hafey, Adviser, Media & Government Relations
0497 330 064 | dylan.hafey@masterbuilders.com.au