The rising cost of established homes is pushing more Australians toward building, with new home sales recording their strongest performance in nearly three years. According to Housing Industry Association figures, sales in the three months to July 2025 were up 15.9% compared to the previous quarter — the highest level since late 2022.

Although there was a 6.4% dip between June and July, HIA Senior Economist Maurice Tapang says the broader trend is one of growth. “Demand for new homes is underpinned by population growth and low unemployment,” he explains, noting that South Australia and Western Australia posted monthly gains, while New South Wales, Victoria, and Queensland recorded modest falls.

Victoria led quarterly growth with sales rising 23.4%, followed closely by South Australia at 23.1%, New South Wales at 18.8%, Queensland at 13.3%, and Western Australia at 2.6%. Tapang adds that despite cost pressures in construction, Australians remain motivated to build, particularly in growth corridors where demand is outpacing supply.