How to resolve AdBlock issue? New ABS Building Activity data amid small builder pressure say Master Builders
This includes a 11.3% lift in detached house starts and only a 0.6% higher density increase. Non-residential building activity is also up 12.1% on a year earlier.
While today's figures provide a snapshot of activity in the June quarter, other recent data releases, including building approvals, indicate the outlook has weakened since.
Building approvals, which precede building activity, dropped by 6.1% in August, with engineering construction activity also falling by 4.7% during the June 2026 quarter.
Master Builders Australia CEO Denita Wawn said it was important to remember that 98% of the construction industry is made up of small businesses.
"Recent policy decisions have been death by a thousand cuts for small building businesses at exactly the time Australia needs them delivering more homes and critical infrastructure," Ms Wawn said.
"Today's figures show there was still activity in the pipeline during the June quarter, but more recent indicators suggest conditions have since deteriorated and the outlook for new projects is becoming increasingly challenging.
"The flat result for higher-density housing is particularly concerning because that part of the market needs to do the heavy lifting if Australia is to meet its housing targets," she said.
“Each new measure, whether it be the ATO’s credit card ban, the upcoming changes to trusts or the changes to property investment, is adding to the growing burden on the small businesses responsible for building Australia."
Master Builders' forecasts released last week downgraded expected activity across housing, civil construction and non-residential building over the next five years compared with forecasts published in March.
The forecasts show Australia is on track to fall 262,000 homes short of the National Housing Accord target of 1.2 million new homes.
“That’s 262,000 less homes for Australian families, first home buyers and renters,” Ms Wawn said.
“The cumulative impact of the Federal Budget, continued interest rate increases and an ongoing global uncertainty have deteriorated the environment.”
ends