New home builds to fall as construction industry faces a skills shortage of up to 80,000 tradespeople

Total new construction of homes across the country is expected to drop by 200,000 dwellings per year until 2026 as skill shortages and supply issues continue to bite, according to the peak body representing builders.

Masterbuilders said while the number of homes currently under construction is at a record high, demand was easing with the latest Australian Bureau of Statistics data showing new housing starts fell 5.2 per cent over the September quarter and had dropped 21.2 per cent since September 2021.

Property prices boomed during the COVID-19 pandemic as many Australians cashed in on government incentives and grants to try and realise the great Aussie dream of home ownership.