Building Progress Amidst Challenges: Australia Pushes Ahead

Despite facing one of the toughest construction climates in recent memory, Australia’s residential building sector is pressing forward with resilience, innovation, and purpose. One year into the ambitious National Housing Accord—a federal pledge to build 1.2 million well-located homes by June 2029—the construction industry is confronting mounting pressures head-on while continuing to play a critical role in addressing the country’s housing needs.

Data from the Institute of Public Affairs (IPA) reveals that the average construction time for a detached home has increased by 50 per cent in the last decade. In 2014, homes were typically completed within 8.5 months; in 2024, that figure has grown to 12.7 months. Material costs have followed a similar trajectory, rising 53 per cent nationally over the same period.

While these figures underline the growing complexity of home construction in Australia, they also highlight the resilience of an industry striving to meet demand in an evolving landscape. The COVID-19 pandemic introduced global supply chain disruptions, and the aftershocks continue to ripple through building timelines and budgets. Yet, encouragingly, the rate of price increases is slowing. Construction cost inflation has dropped from a peak of 17.3 per cent in mid-2022 to just 1.1 per cent in the March 2025 quarter—proof that efforts to stabilise the market are beginning to pay off.

Performance varies by state, with Western Australia experiencing the most significant build-time blowout at 17.8 months—a rise of 85 per cent since 2014. South Australia follows at 15.8 months. Even in quicker-to-complete states like Queensland (10.2 months) and Victoria (11.3 months), build times have noticeably expanded. Rising material costs have further complicated the picture, with all states seeing increases of between 45 and 58 per cent.

While these figures present a challenge, they also offer a clear direction: industry and government collaboration is essential. IPA research director Morgan Begg emphasised that red tape and regulatory delays are key culprits in the lag, urging governments at all levels to reduce bureaucracy, release more land, and accelerate planning approvals.

The federal government agrees that change is needed. Housing Minister Clare O’Neil has stated that streamlining regulation will be a priority in the coming term. She will also now oversee national planning policy, creating an opportunity for cohesive reform that supports productivity, modern construction methods, and the removal of barriers to progress.

It’s important to acknowledge that construction doesn’t happen overnight, and systemic reform takes time. But signs of progress are already emerging. Inflationary pressures are easing, new technologies are being embraced, and builders across the country remain committed to turning plans into places for Australians to call home.

Despite criticism from opposition voices, the government is standing firm in its approach, advocating for long-term solutions over short-term politics. The construction industry, too, continues to demonstrate unwavering determination, adapting to new conditions while maintaining its focus on quality and community outcomes.

The road to 1.2 million homes is not without hurdles—but every home completed represents a step forward. As we reflect on the first year of the National Housing Accord, it’s clear the foundation is being laid—not just for more housing, but for a stronger, smarter and more sustainable future for Australia’s built environment.

With the right policy, support, and industry collaboration, the next four years offer a powerful opportunity to build not only more homes—but greater hope.