New Home Demand Holds Strong Across the Country

Australia’s residential construction sector has kicked off 2026 with a strong signal: new home sales rose 19.3 per cent in January, continuing a recovery that has been building steadily over the past twelve months.

Sales in the three months to January were 26.2 per cent higher than the same period a year prior, driven by the cumulative effect of rate cuts through 2025, low unemployment, population growth, and rising established dwelling prices.

All five major states recorded growth over the past year:

• VIC: +33.2%
• SA: +22.9%
• QLD: +18.2%
• WA: +6.9%
• NSW: +2.6%

The February rate increase introduces some uncertainty, but borrowing capacity remains stronger than it was a year ago and the underlying fundamentals haven’t changed. Population continues to grow, employment remains solid, and the appetite for new homes is real.

For everyone working in residential construction, whether you’re delivering projects or building a career, the fundamentals are pointing in the right direction.