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Housing supply bottleneck deepens as construction delays threaten rents, property prices

Australia's housing shortage is shifting from an approvals problem to a construction problem, with industry experts warning today's stalled developments will shape tomorrow's rental market and property values.

The Sydney building activity, with new skyscrapers and construction occurring in Sydney CBD, Australia.
Australia has a record number of homes under construction, but completion rates continue to lag demand, adding to concerns over future housing supply and rental pressures. (Image source: FiledIMAGE/Shutterstock.com)

Australia is building fewer homes than it needs despite a record number of dwellings under construction, reinforcing concerns that chronic housing undersupply will continue to support rents and, over time, property prices.

The latest Australian Bureau of Statistics figures show 43,816 dwellings were completed in the March 2026 quarter, well below the 60,000 homes required each quarter to meet the Federal Government’s National Housing Accord targe…

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