Australia has lost the ability to build things

Tuesday 8 September 2026

Australia’s construction pipeline is bigger than ever.

Following decades of mass immigration, Australia is suffering from a chronic housing shortage estimated by AMP chief economist Shane Oliver to be between 200,000 and 300,000 dwellings.

Australia’s current rate of housing construction is tracking at only 173,400 in the year to March 2026, well below last decade’s peak and the federal government’s own housing targets.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.