New Homes in Demand

While transaction levels took a dip in November, new home sales overall are significantly higher than at the start of the year and are gaining momentum.

The Housing Industry Association’s monthly survey of Australia’s largest volume builders shows that very strong sales in September and October have helped boost the annual results.

HIA chief economist, Tim Reardon, says it confirms that there is a recovery underway in new home building, with quarterly results the strongest since the middle of 2022.

“Sales in the three months to November 2025 were 9.4% higher than the previous quarter and 23.7% higher than the same quarter in the previous year,” he says.

“The broader economic environment is increasingly supportive of new home building in 2026.”

Reardon says confidence is being reinforced by strong population growth, low unemployment and rising established home prices.

“We are seeing enquiry levels rise and contract activity improve. Demand is not the challenge in this cycle. The challenge is delivering enough new homes to meet it.”