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8 April 2026
New ABS data shows a welcome 8 per cent increase in new home starts and a 0.3 per cent gain in non-residential building activity, during the December 2025 quarter.
Higher density home starts also rose by 19.9 per cent while detached house commencements dipped by 0.7 per cent.
More broadly, the data highlights the strongest quarter for new home building starts since September 2021. Higher density starts enjoyed their best quarter since September 2018.
Master Builders Chief Economist Shane Garrett explained that while this is positive for builders, we’re still not building enough new homes to meet our Housing Accord targets.
“Australia has amassed a 77,500-home shortfall since the start of the National Housing Accord, with these latest figures meaning that an unprecedented 262,140 new homes per year need to be built over the remainder of the Accord’s term to 2029,” said Mr Garrett.
Master Builders CEO Denita Wawn commented that the May federal budget provides an opportunity to expedite the delivery of the National Housing Accord target of 1.2 million new homes over 5 years.
“The policy measures in the budget must be holistic and must stimulate an increase in all construction including new housing supply through a range of programs, tax settings and workforce growth,” said Ms Wawn.
Master Builders Australia’s Pre-Budget Submission advocates:
- Investment incentives: offering accelerated depreciation for capital works and increases to the Instant Asset Write Off
- Regulation reduction: streamlining the National Construction Code and commit to a radical red tape reduction across the board by at least 25 per cent as called for by the Alliance of Industry Associations.
- Workforce increases: investing in all apprentice training pathways and embracing skilled migration.
- Infrastructure investment: increasing private and public investment in housing enabling infrastructure.
“These holistic policy settings will drive stronger building and construction activity in an industry that employs 1.375 million Australians,” concluded Ms Wawn.
Media contact: Dylan Hafey, Media Advisor
0497 330 064 | dylan.hafey@masterbuilders.com.au