Australian Bureau of Statistics data reveals a substantial decline in dwelling approvals for January 2026, falling 7.2 per cent to 14,564. This follows a 14.9 per cent decrease recorded in December, signalling a concerning trend in the housing sector. The figures highlight a growing disparity between housing supply and demand, particularly when viewed against Australia’s increasing population. In the past year, total dwelling approvals have plummeted by 15.8 per cent, contrasting sharply with a population increase of 420,100 people during the same period.
A breakdown of the approvals reveals a significant divergence between house and unit construction. Approvals for private sector dwellings, excluding houses, experienced a steep decline of 24.5 per cent, settling at 4393. In contrast, private sector house approvals saw a modest increase of 1.1 per cent, reaching 9753. This suggests a shift in construction focus towards detached housing, potentially exacerbating affordability issues for those seeking higher-density living options.
Across the states, the trend was mixed. Victoria experienced the most significant decrease, with an 11.0 per cent drop in dwelling approvals. South Australia followed with a 9.3 per cent decline, while Queensland and New South Wales saw decreases of 6.0 per cent and 5.1 per cent, respectively. Bucking the trend, Tasmania recorded a notable increase of 14.1 per cent, and Western Australia saw a rise of 13.7 per cent. These state-level variations highlight the complex interplay of factors influencing housing supply and demand across the country.
