New home completions plunge to 12-year low as Australia’s housing crisis deepens

Australia’s housing crisis deepened in 2025 as new home completions fell to their lowest level in 12 years, with just 172,246 dwellings finished—down from 170,000 in 1994 when the population was half its current size. The country’s total housing supply grew by only 0.04%, failing to meet the National Housing Accord’s annual target of 240,000 new homes for the second year in a row, leaving it on track to miss the 2029 goal of 1.2 million additional homes. Victoria’s completions dropped by 10%, dragging national figures downward despite its usual role as the housing supply leader. Tasmania and the Australian Capital Territory saw the steepest percentage declines—18.4% and 15.7%, respectively—though from smaller bases. Queensland and Western Australia increased construction but still struggled to match population growth, with migration-driven demand outpacing supply. Rising build costs, now nearing $190,000 in the ACT over three years, have forced developers to shift toward slower-to-complete apartments, prolonging project timelines. Housing Industry Association economist Tom Devitt noted weak new-home pipelines in New South Wales, Victoria, and the Northern Territory, where demand remains strong despite low construction volumes. The 2025 completions figure was thousands below 2014 levels, despite Australia’s population growing by nearly four million since then. Net overseas migration hit 311,000 in 2025, up from 182,000 in 2014, further straining an already strained housing market. Experts warn the gap between demand and supply will worsen unless construction accelerates or costs stabilize.