Local Supply Key to Meeting Housing Ambitions

Cement Concrete & Aggregates Australia

Key Facts:

  • Victoria recorded a 9.7 per cent monthly increase in total dwelling approvals in July, though it remains the largest home-building state in Australia with 13,972 dwellings commencing construction in the March quarter.
  • Victoria's longer-term housing recovery has been slower than other states, with commencements growing just 1.5 per cent over the four quarters to March 2026, compared to around 19.5 per cent in Queensland and 15.2 per cent in both Western Australia and South Australia.
  • CCAA has met with Victorian Minister for Housing Nick Staikos to highlight the critical role that cement, concrete and aggregates play in delivering the state's housing pipeline.
  • The organisation has warned that significant increases to quarry fees from 1 January 2027, alongside further regulatory reform, risk undermining efforts to increase housing supply by raising costs and complexity for construction materials suppliers.
  • CCAA is calling for more proportionate rehabilitation bond arrangements, more efficient quarry approvals, and stronger protection of strategically important construction material resources to ensure Victoria can meet its housing ambitions.

Cement Concrete & Aggregates Australia (CCAA) has welcomed Victoria's continued focus on increasing housing supply, while warning that more housing approvals must be backed by a secure and competitive supply of the materials needed to build them.

The call follows the latest Australian Bureau of Statistics building approvals data and a meeting between CCAA and Victorian Minister for Housing, Building and Precincts Nick Staikos this week.

The ABS figures show total dwelling approvals across Australia fell 3.6 per cent in July. Victoria recorded a 9.7 per cent monthly increase in total dwelling approvals, although private sector house approvals fell 4.1 per cent and total approvals declined 1.2 per cent in trend terms.

Victoria also remains Australia's largest housing-start market in absolute terms, with 13,972 dwellings commencing construction in the March quarter - ahead of New South Wales and Queensland.

However, the longer-term figures show Victoria's housing recovery has been considerably slower than several other states. Around 55,200 dwellings commenced in Victoria over the four quarters to March 2026, an increase of just 1.5 per cent on the preceding four-quarter period.

By comparison, commencements grew by around 19.5 per cent in Queensland and 15.2 per cent in both Western Australia and South Australia over the same period.

CCAA Chief Executive Officer Michael Kilgariff said Victoria's position as Australia's largest home-building state should be recognised, but maintaining that scale and generating stronger growth would require the right policy settings across the construction supply chain.

"Victoria needs more homes and CCAA strongly supports efforts to get those homes approved and built sooner," Mr Kilgariff said.

"Victoria is already building homes at a significant scale, but the challenge is maintaining that position and creating the conditions for the further growth we need.

"That means looking beyond approvals and considering the entire supply chain that ultimately turns an approval into a completed home.

"Every new home requires concrete, cement and aggregates, and Victoria needs a secure and competitive supply of those materials if its housing ambitions are going to translate into homes on the ground.

"We welcomed the opportunity to meet with Minister Staikos this week to discuss the critical role our industry plays in supporting Victoria's housing pipeline."

CCAA has warned that growing regulatory costs and uncertainty facing Victoria's quarrying sector risk working against efforts to increase housing supply.

Significant increases to quarry fees are due to commence from 1 January 2027, alongside further regulatory reform under the Mineral Resources (Sustainable Development) Act.

CCAA is also seeking more proportionate rehabilitation bond arrangements, more efficient quarry approvals and stronger protection of strategically important construction material resources.

"At the same time as government is working to increase housing supply and reduce barriers to construction, the industry supplying the raw materials needed to build those homes is facing higher regulatory costs and further complexity," Mr Kilgariff said.

"Victoria needs strong environmental and community protections, but it also needs policy settings that encourage investment and allow construction materials to be supplied locally and efficiently.

"If Victoria wants to build more homes sooner, ensuring the materials needed to build them are available must be part of the solution."

CCAA will continue working constructively with the Victorian Government to ensure the heavy construction materials sector can support the State's housing and infrastructure ambitions.

About us:

About CCAA CCAA is the voice of Australia's heavy construction materials industry, an industry that contributes $20.7 billion to GDP and supports 112,970 jobs nationwide. CCAA members produce most of Australia's cement, concrete and aggregates, which are essential to the nation's building and construction sectors.

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