Aussie housing approvals went backwards in March, with data showing Aussie families aren’t at the top of the list for the future pipeline.
Albanese government hopes of improving the nation’s housing affordability crisis by building more homes took a hit in March as the number of new residences being green lit fell.
And, in a bitter blow for families hoping to see an improvement in soaring house prices, thousands of approvals have come through in regions heavily driven by apartments — or already home to some of the nation’s highest-priced homes.
It’s an indication that the biggest increases in the supply of new homes in the medium term are likely to be in municipalities where any affordable residences are likely to be modest apartments.
RELATED: Olympic tradie shortage threatens as next Australian housing crisis
Iran war adds $5k to Aussie home build cost, bigger $31k hike ahead
Australia 77,500 homes short of crucial housing target after $110bn record
Australian Bureau of Statistics data showed the 17,300 homes given the nod by planners around the country was down 10.5 per cent from 19,339 in February.
The March numbers were largely led down by reductions in activity in Victoria where there was a 16.9 per cent plunge, and Western Australia, down 15.5 per cent.
The loss of momentum in March has raised concerns from the building industry, amid warnings three interest rate hikes and the war in Iran and its subsequent oil shock had yet to impact the approvals data — which relates to sales made in large part last year.
Housing Industry Association chief economist Tim Reardon said the March figures, and the high prevalence of apartments that underpinned the top spots for approvals, reflected a growing reality that Aussie first-home buyers would be starting out in an apartment.
Albanese government hopes of the nation building its way out of the building crisis took a backward step in March. Picture: Toby Zerna.
“But we shouldn’t be afraid of density, as increasingly first-home buyers’ first homes will be an apartment,” Mr Reardon said.
“And that will be an important step into getting to own a house in the future.”
However, Mr Reardon noted it was important to factor in that apartment approvals were made before sales occurred, while house approvals came after the sale — which meant a greater share of apartment approvals would take longer to translate into construction, with some never doing so.
The economist added that after a lot of momentum at the start of the year, the March figures retreating was not significantly concerning on its own — but the nation was facing headwinds ahead.
“Rising interest rates and rising costs of building a home are hitting up against rises in unemployment,” Mr Reardon said.
The top spots for new home approvals in March were not for suburban houses, but for apartments in major city centres.
Master Builders Australia chief executive Denita Wawn said they were currently forecasting the nation would fall more than 200,000 homes short of the National Housing Accord’s 1.2 million homes target and the latest figures “show that a 77,600-home backlog has already accumulated”.
“This new data shows Australia still needs a rapid dismantling of supply barriers and an increase in building approvals that will stimulate the civil, residential and non‑residential pipelines and fight back against housing inflation,” Ms Wawn said.
Oxford Economics Australia lead economist Maree Kilroy warned multiple increases to the nation’s interest rates as well as the impacts on build costs caused by the conflict in the Middle East had yet to reach the nation’s building approvals data.
In most instances, Ms Kilroy said the approvals related to sales made in 2025 or early 2026.
Where Australia’s New Homes Are Being Approved
| LGA | STATE | APPROVALS |
| Melbourne | VIC | 818 |
| Gold Coast | QLD | 773 |
| Brisbane | QLD | 768 |
| The Hills | NSW | 675 |
| Logan | QLD | 564 |
| Moreton Bay | QLD | 496 |
| Melton | VIC | 439 |
| Ipswich | QLD | 376 |
| Wanneroo | WA | 373 |
| Stonnington | VIC | 369 |
| Wyndham | VIC | 345 |
| Casey | VIC | 304 |
| Greater Geelong | VIC | 302 |
| Blacktown | NSW | 251 |
| Playford | SA | 238 |
| Liverpool | NSW | 232 |
| Camden | NSW | 228 |
| Hume | VIC | 214 |
| Whittlesea | VIC | 214 |
| Central Coast | NSW | 185 |
Source: Australian Bureau of Statistics
Figures released today show the Local Government Areas where the most new homes are being approved are dominated by Victoria, with eight of the nation’s 20 busiest spots for new home approvals there.
NSW and Queensland both had five.
The Melbourne Local Government Area had the nation’s highest number of approvals in March, with 818.
It was followed by the Gold Coast with 773 and Brisbane at 768.
All three have relatively high levels of apartment development, with City of Melbourne in particular almost exclusively the domain of high rise towers.
The next highest number of approvals came from NSW’s affluent The Hills municipality at 675.
The City of Melbourne had the most apartment approvals in March — though it’s not expected all will translate into home builds.
Queensland’s Logan Shire Council was the first affordable one to make the list of top approvals in March at 564, at fifth on the list.
It was followed by Queensland growth hub Morton Bay at 496, and Victorian new house Mecca the Melton Shire council which had 439 approvals.
The first relatively affordable new housing location in NSW was Blacktown, with just 251 new homes given the OK.
South Australia’s Playford region was the only area with a significant number of new approvals for new residences, at 251.
Affordable new house areas have the most to gain from a $2bn weekend pre-budget announcement by federal Treasurer Jim Chalmers that promised the funds for the establishment of infrastructure to support new housing.
However, Mr Reardon noted that this would take several years to impact housing affordability — though was absolutely an important step for the government to have taken.
The most effective housing support policy so far has come from NSW Premier Chris Minns, according to the Housing Industry Association. Picture: NewsWire / Nicholas Eagar.
For more immediate benefits, the economist said NSW had implemented one of the best policies for generating more home builds with its $1bn Pre-sale Finance Guarantee scheme for developers.
It effectively has the government act as a guarantor to 50 per cent of off-the-plan homes in a project, allowing the developer to get finance approved for construction to commence sooner.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: 21k tradie shortage threatens to drive up home prices, rents, rates
English (US) · 