ABS Building Activity data shows 10,227 new homes were completed in NSW during the March quarter, down 15% from 12,070 in the previous quarter, while 11,841 homes commenced construction, down from 16,606 in the previous quarter, a 29% drop.
Over the 12 months to March 2026, NSW recorded 51,829 commencements and 44,700 completions – both well short of the more than 88,386 homes now required each year to meet NSW’s National Housing Accord target of 377,000 new homes by July 2029.
Property Council NSW Executive Director Katie Stevenson said the data highlight the challenge facing the state’s housing pipeline despite a strong reform agenda designed to boost supply.
“These figures show the housing challenge facing NSW remains significant with a substantial gap between housing targets and housing delivery,” Ms Stevenson said.
“The March quarter data confirms the reality that NSW still needs to dramatically lift the number of homes being delivered if we’re going to meet the needs of our growing population.”
Ms Stevenson said the latest figures should be viewed alongside recent building approvals and industry sentiment data, both of which point to ongoing pressure throughout the housing development pipeline.
“Recent approvals data showed NSW entered the third year of the National Housing Accord with a pipeline well behind the trajectory needed to meet its target.
“Our latest Procore/Property Council sentiment survey released last week shows industry confidence has fallen below neutral, as cost pressures and financing constraints continue to weigh on delivery,” she said.
“What we’re seeing across the data is a consistent story. Demand for housing remains strong, governments are pursuing planning and building reform, but too many projects are still struggling to move from approval to construction and ultimately completion.
“Construction costs remain elevated, access to finance remains challenging and government taxes, charges and contributions continue to place significant pressure on project viability.
“Without continued focus on feasibility, there is a real risk that too many approved projects will remain stuck on the drawing board,” she said.
