The number of new homes completed in the past quarter has dropped substantially, signaling challenges for Australia’s housing supply. According to the latest Australian Bureau of Statistics figures, new dwellings completed fell by 12.5% compared with the same period last year. In the June 2025 quarter, 41,432 homes were completed, down from 46,151 the previous year.

This decline is also reflected in the number of homes where construction started, with dwelling commencements down by 4.4%. The overall value of building work similarly saw a reduction, highlighting a slowdown across the residential building sector.

The Urban Development Institute of Australia’s 2025 State of the Land Report warns of a looming supply shortfall of approximately 400,000 dwellings for combined capital cities by 2029. Persistent under building relative to population growth and ongoing challenges within the construction industry are key contributors to this forecast.

Tim Reardon, Chief Economist at the Housing Industry Association (HIA), notes that Australia began construction on 60,960 fewer homes than needed in FY2025 to meet the government’s ambitious target of 1.2 million new homes over five years. This shortfall raises concerns about the capacity of the housing market to keep pace with demand, potentially pushing prices higher and limiting affordability.

Efforts to address these issues may require policy shifts, increased investment in construction infrastructure, and strategies to attract skilled labor to the sector.