Building Numbers Dropping
The number of new homes completed in the past quarter has dropped substantially.
According to the latest Australian Bureau of Statistics figures, the number of new dwellings completed is down by 12.5% compared with the same time last year.
There were 41,432 homes completed during the June 2025 quarter compared to 46,151, a year earlier.
The data also shows a drop in the number of homes on which construction started in the June 2025 quarter with the total number of dwelling units commenced down by 4.4% and the value of building work also dropping.
The Urban Development Institute of Australia’s 2025 State of the Land Report forecasts a supply shortfall of about 400,000 dwellings for the combined capital cities by 2029.
It says persistent underbuilding relative to population growth and challenges in the construction sector are major contributing factors.
HIA chief economist Tim Reardon says Australia started on 60,960 fewer homes than is necessary in FY2025 to meet the government’s target of 1.2 million new homes over five years.
