Australia's housing crisis is entrenched

Australia is already experiencing its worst rental crisis in modern history, with capital city advertised rents soaring by 43% over the past five years (to Q4 2025), adding $11,115 to the annual rental bill of the median tenant, according to Cotality.

The Australian Bureau of Statistics (ABS) released housing construction data for the September quarter of 2025, indicating that Australia’s housing shortfall had worsened.

First, the good news. The number of homes that began construction in the September quarter increased by 3.0% in trend terms to 48,376, driven by a 4.7% increase in unit and apartment commencements.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

Australia’s housing crisis is entrenched