New data from the Australian Bureau of Statistics shows dwelling commencements continue to rise, with total commencements up 11.6 per cent on this time last year and their highest level in three and a half years.
A total of 48,778 dwellings commenced over the quarter, the strongest quarterly result since March 2022.
The number of quarterly dwelling commencements is now 17.2 per cent higher than it was at the start of the National Housing Accord period - a clear sign that housing construction activity is gathering momentum.
Coupled with a significant improvement in housing approvals earlier this month, these leading indicators show that the Albanese Labor Government's leadership on housing across state, territory and local governments is starting to bear fruit.
Private sector house commencements rose 6.9 per cent to 28,485 dwellings, while commencements for other private sector residential buildings (e.g., apartments and townhouses) increased 3.5 per cent to 18,747 dwellings - the highest level in four years.
While housing completions are not where we want them to be, this reflects the flowthrough of lower housing approvals from a few years ago, following post‑pandemic increases in construction costs and labour shortages.
When the Albanese Government came to office, approvals were falling through the floor and construction cost inflation was rising at 17 per cent per annum - a half century high. Construction cost inflation is now down to 2.1 per cent.
The Albanese Government remains focused on boosting housing supply across the country with the majority of our $45 billion housing program squarely focused on improving housing supply, including:
- Driving action across all levels of government and industry through the aspirational National Housing Accord target to build 1.2 million homes over five years.
- Speeding up construction through planning reform, streamlined environmental approvals and a pause and simplification of the National Construction Code.
- Growing the construction workforce with Free TAFE and $10,000 apprenticeship incentives for tradies.
- Delivering 55,000 social and affordable homes for Australians who need them most through initiatives like the Housing Australia Future Fund.
- Unlocking up to 80,000 new rental homes by cutting taxes for Build‑to‑Rent developments and supporting long‑term leases.
While there is still more work to do, today's figures are another encouraging sign that housing construction is moving in the right direction.
Quotes attributable to the Minister for Housing, Clare O'Neil
"These are encouraging figures that show that the reforms federal Labor is leading with our state and territory government partners, are starting to bear fruit.
"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.
"Building more homes is the only way to make housing more affordable long term, and that's exactly what this Government is focused on doing."
