Approvals Rising – But Not Enough

Building approvals increased in June, but not enough to reach housing targets, according to new Australian Bureau of Statistics data.

Approvals are up by 7.2% in June to 18,328 dwellings. ABS head of construction statistics Daniel Rossi says private sector house approvals rose 0.4% in June – the sixth month in a row with more than 10,000 approvals.

As at the end of FY2026, there have been 205,000 approvals – up 9.2% on the previous year. There are 253,000 approvals needed every year to reach national housing accord targets.

“The increase saw dwellings approved in the FY2026 financial year at its highest level since FY2021,” Rossi says.

Property Council of Australia executive Matthew Kandelaars says while it is encouraging that approvals are starting to rise, the more important data is how many homes are completed.

“Approvals are an important indicator of future activity, but they are only the first step in the delivery process,” he says.

A Productivity Commission interim report says that changes are needed to building regulations to improve supply and affordability.

It says poorly designed regulations are preventing homes from being built where people want to live.