Source
Aug 31, 2023
Approvals for new homes, especially apartments and other higher-density dwellings, have declined in recent months. This drop intensifies fears that Australia is falling further behind its housing goals.
The housing crisis in Australia deepened as building approvals dropped in July 2025. The Australian Bureau of Statistics reported only 15,796 new dwellings approved, down from 17,076 in June. The decline was driven largely by a sharp fall (22.3%) in approvals for medium-to-high density dwellings such as apartments. Although private house approvals saw a slight uptick (1.1%), the total remains well below what’s needed to meet the government’s target of 1.2 million new homes by 2029. Key barriers include rising construction costs, labor shortages, and complex regulatory and approval processes.