Since May, there has been a modest uptick in the number of new homes approved to be built in Australia, according to the latest data from the Australian Bureau of Statistics.
The rise, especially in approvals for high-density homes like apartments, has been welcomed by industry groups, although the Federal Government's target of 1.2 million homes is still far beyond reach. According to the Australian Bureau of Statistics there has been a 11.9% yearly change in dwelling approvals and a 6.5% increase in total dwelling units approved.
Master Builders Australia chief economist Shane Garrett said the number of new home building approvals was up by 3.2 per cent during May 2025.
“This was largely due to the 9.0 per cent gain in higher density building approvals during the month," Shane said.
“Approvals for new detached houses rose by the smallest of margins (+0.1 per cent) – their highest level in 8 months.
“Over the year to May 2025, 182,894 new homes have been approved across Australia. This is the biggest total for any 12-month period since early 2023.
“However, if homebuilding were to remain at this pace, it would only deliver just 915,000 new homes in five years – representing a 285,000-home shortfall relative to the National Housing Accord’s target.
“Rents are still rising, but the speed at which they are doing so has slowed.
“The gradual increase in the delivery of higher density homes is partly behind this.
“Conditions for renters could be improved further if we achieve further gains in higher density home building."
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