Housing Targets Slip Further From Reach

Australia is at serious risk of not meeting its future housing targets, despite new figures showing a slight increase in dwelling commencements.

ABS data shows that dwelling commencements rose 7% in the quarter to June 2026, with houses accounting for 11.6% of this growth. The start of construction on apartments dropped slightly during the quarter by 0.1% – although both sectors are up over the past 12 months.

Property Council Group Executive Policy and Advocacy Matthew Kandelaars says that Australia still has a long way to go.

“Australia simply cannot meet its housing ambitions on the current trajectory and policy headwinds,” he says.

The latest Property Council industry sentiment survey found shows that confidence is at its lowest level since the pandemic.

“You cannot increase housing supply while simultaneously making investment harder and stretching the workforce needed to build it,” he says.

The ABS data shows work started on 52,201 dwellings during the quarter, led by Victoria with 16,239 dwellings under construction.

Queensland is next with 11,671 dwellings started followed by New South Wales, with 11,252, Western Australia with 7,240 and South Australia with 3,913.