Pipeline under pressure: Rising construction and finance costs stall new housing

The latest approvals data reveal a softer outlook, while the industry warns that rising costs and uncertainty are calling new projects into question.The latest seasonally adjusted Australian Bureau of Statistics data showed that the total number dwellings approved in the month of July fell 3.6%, to 17,687, compared to June. Building approvals for July fell 3.6% to 17,687. Picture: GettyDetached house approvals dropped 4.2% to 10,199, while private sector dwellings excluding houses — including apartments, townhouses and semi-detached homes — slipped 0.4% to 7119. The result followed a 7.2% rise in approvals in June. For July, total approvals fell in Queensland (-13.9%) NSW (-8.1%) and Western Australia (-0.3%), but rose in Tasmania (15.2%), Victoria (9.7%) and South Australia (5.9%). Master Builders Australia chief economist Shane Garrett said July was the first month since October 2025 in which both categories of home building approvals fell at the same time. “New dwelling costs have risen by 5.7 per cent over the past year, while rental inflation remains elevated at 3.6 per cent,” Mr Garrett said. “Rising construction costs, combined with ongoing uncertainty across the market, are...