September approvals rise, but Australia still faces shortfall

2 November 2026

Today’s ABS Building Approvals data for September shows a 5.1 per cent monthly increase for new home building approvals. Detached house building approvals fell by 5.3 per cent, while higher-density approvals lifted by 24.6 per cent.

Non-residential building approvals also rebounded, rising 45.9 per cent in September after a sharp reduction during August.

Master Builders Australia Chief Economist Shane Garrett said the September results were encouraging but masked growing uncertainty.

“While it is positive to see approvals move higher, builders’ forward books are becoming increasingly uncertain. Our recently released forecasts show that new home building activity will decline steadily over the coming years and will be substantially lower than anticipated just six months ago.

“What has happened in six months? A deeply flawed Federal Budget, a conflict in the Middle East and higher interest rates. This has seen a building and construction slowdown, a situation that will result in less homes, infrastructure and buildings being delivered.

“The cost of delivering new homes has increased dramatically, rising by more than 50 per cent since the pandemic. At the same time, the cost of building roads, bridges and non-residential projects has surged, placing further pressure on investment and project viability.

“Much of the increase in non-residential approvals appears to have been driven by major data centre projects. This rebound comes after non-residential approvals fell by 45.5 per cent in August,” said Mr Garrett.

Master Builders Australia CEO Denita Wawn said the figures highlighted the widening gap between the Government’s stated ambitions and reality.

“September’s numbers are nowhere near the levels needed. The Government was elected on a promise to boost housing supply. Their recent decisions are leading to the opposite. The reality on the ground is that builders and tradies continue to face rising costs, workforce shortages and growing uncertainty.

“Ninety-eight per cent of building and construction businesses are small businesses. These tradies need lower costs, greater certainty and policies that encourage investment and growth.

“Builders didn’t create the current crisis, but they stand ready to help solve it. What they need is a policy environment that supports, rather than hinders.”

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

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