More homes are going up across Australia, but industry bodies say a critical gap remains.
New seasonally adjusted data from the Australian Bureau of Statistics shows 48,778 dwellings started construction in the September 2025 quarter.
The figure is 6.6% higher than the June quarter and up 11.6% over the past 12 months.
According to ABS data, 48,778 dwellings started construction in the September 2025 quarter. Picture: Getty
According to the data, the rise was largely driven by new houses, which increased 6.9% to 28,485 homes, following a 4.9% fall in the June quarter. Other residential commencements rose 3.5% to 18,747 dwellings in the September quarter.
Under the National Housing Accord, Australia has a target of delivering 1.2 million new homes by mid-2029. To meet this goal, the nation needs to start construction on around 240,000 homes each year.
In the first 15 months of the Accord, 230,658 new homes started construction across Australia, according to analysis from Master Builders Australia. This represents a shortfall of about 69,000 homes at the current pace.
But the latest commencement figures could signal steady momentum across the building industry, following recent approvals reaching a near four-year high.
According to housing minister Clare O’Neil, quarterly dwelling commencements are now 17.2% higher than at the start of the National Housing Accord period in mid-2024.
“Housing supply is starting to turn the corner, with more home building starting, more tradies on the tools, and ultimately more homes built for Australians,” Ms O’Neil said.
The Housing Industry Association (HIA) said the results could point to steady, rather than rapid, growth across the industry, particularly in apartment construction.
“These are positive signs that confirm our expectation that the number of homes commencing construction will see steady, not explosive, growth over the next couple of years,” HIA senior economist Maurice Tapang said.
“This growth is expected to come from a resurgence in apartment construction. Apartment construction remains well below the volume commencing construction a decade ago and is one of the keys to increasing supply.”
Completions still lagging
Despite the rise in commencements, industry bodies say Australia is still not completing enough homes.
In the September 2025 quarter, 44,242 dwellings were completed, down 1.2% from the June quarter. Over the first 15 months of the Accord, 218,974 new homes were completed nationwide.
The Property Council of Australia said the focus now needs to shift to delivery.
“We now have completions data for five out of 20 quarters across the Accord period and it’s clear we need a step-change in delivery in 2026 to hit the target,” Property Council group executive of policy and advocacy Matthew Kandelaars said.
“Australia currently needs to average around 64,000 new homes every quarter — we managed almost 70% of that goal in the September 2025 quarter so there’s still more work to do.
“It takes more than a year to build a detached home and typically more than three years to deliver an apartment project from start to finish. That’s why a slow quarter today can lock in a shortfall years from now, without drastic action.”
The comments come as governments across the country move to lift housing supply across different segments.
In September 2025, the NSW government launched its Pre-Sales Finance Guarantee, allowing the state to commit to purchasing up to 50% of homes approved in off-the-plan developments, valued at up to $2 million each.
Support under the scheme can range from $5 million to $50 million per project, with the first announced development forming part of the $285 million Rozelle Village project.
The guarantee is supporting 32 affordable homes off the plan if qualifying pre-sale requirements are not met before the project’s expected completion in 2028.
According to the state government, 31 expressions of interest have been submitted across NSW, with around a third invited to lodge full applications.
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