New ABS data shows building approvals have reached their highest level in more than four years - providing strong foundations for the construction sector to respond to significant global economic headwinds.
More than 19,000 dwellings were approved in February, up 14 per cent compared to the same time last year, with strong growth in apartments and other higher‑density housing.
This builds on earlier positive data prior to the conflict in the Middle East, including construction cost inflation falling from 17.3 per cent per year when Labor came to government to 1.8 per cent per year in the December quarter 2025.
These results show Labor's ambitious $45 billion housing plan is working - boosting supply, removing barriers to construction and getting more homes built across the country, by:
- Driving supply through the National Housing Accord's 1.2 million homes target
- Cutting red tape through planning and environmental approval reforms
- Training more tradies through Free TAFE and $10,000 apprenticeship incentives
- Delivering 55,000 social and affordable homes through initiatives like the Housing Australia Future Fund
- Unlocking new rental supply through Build to Rent reforms
While higher approvals and improved construction cost inflation are an important step forward, global uncertainty will make the task of building 1.2 million homes more difficult.
The ongoing conflict in the Middle East is placing pressure on supply chains, materials and construction costs - creating a tougher environment for everyone involved in the process of building a new home.
The Albanese Government is working closely with industry and remains in lockstep, working to manage these economic pressures and keep the pipeline of housing strong.
While there remains more to do to fix a housing crisis generations in the making, these figures show we are entering a more uncertain global environment with stronger foundations.
Quotes attributable to the Minister for Housing, Homelessness and Cities, Clare O'Neil MP
"These are great approval figures which show the Albanese Labor Government is making strong progress on building more homes, however we're clear‑eyed about the pressures ahead from the conflict in the Middle East.
"We'll keep working closely with the construction industry to keep projects moving and keep building the homes Australians need even in the face of these global economic challenges."
