30/07/2026
Australia has a housing supply crisis and a builder working capital crisis. They turn out to be a similar problem.
Three shortages are stacking up in Australian construction right now. Homes, tradespeople, and the capital to build with. Only one of them is fixable from your side of the desk.
𝗧𝗵𝗲 𝗵𝗼𝘂𝘀𝗶𝗻𝗴 𝘀𝗵𝗼𝗿𝘁𝗮𝗴𝗲 𝗶𝘀 𝗿𝗲𝗮𝗹, 𝗮𝗻𝗱 𝗶𝘁 𝗶𝘀 𝗻𝗼𝘁 𝗲𝗮𝘀𝗶𝗻𝗴
Start with the demand side, because it is the part nobody disputes.
Australia’s population reached 27.8 million at the end of December 2025. It grew by 412,500 people over that year, a rise of 1.5 per cent, with net overseas migration contributing 301,000 of them. Every one of those people needs somewhere to live.
Supply has responded, up to a point. Dwelling approvals reached 17,019 in May 2026, up 5.3 per cent on the year before. House approvals hit their highest level since September 2021, the fourth month running above 10,000. On paper, the pipeline looks healthy.
But the problem sits between approval and handover. Over the past year approvals rose 9 per cent while completions actually fell 2 per cent. We are approving more homes and finishing fewer of them.
The National Housing Supply and Affordability Council now expects around 980,000 homes across the National Housing Accord period, against a target of 1.2 million. The target date has slipped from June 2029 to September 2030, and given past performance, even that is likely to be a bit on the optimistic side!:
Article continued here: https://keypointaccountants.com.au/why-builders-can-go-broke-in-a-housing-shortage/
