The number of new homes currently being built in Queensland has hit a ten-year high – but persistent labour shortages threaten industry’s capacity to meet growing demand.
A forecast from Master Builders shows construction started on an estimated 44,592 new homes across the state in FY2025–26; a 22.4% increase on the previous financial year. Higher density housing (apartments) was the main driver, which leaped ahead by 56.2%. Detached housing starts also recorded solid growth at 4.7%.
Non-residential building is likely to have reached a record high during 2025–26, with a 15.8 per cent expansion lifting activity to $13.5 billion. Retail and commercial construction was the strongest performer, up 23.4%. Social, cultural and recreational projects remain the largest component of Queensland's non-residential market, growing by 15% and reaching $6.38 billion; while industrial building activity also grew by 8.2%.
Master Builders General Manager – Policy & Advocacy, Dyan Johnson, said while the industry is operating at historically high levels, workforce shortages and capacity constraints remain the defining challenge moving forward.
“Homebuilding in Queensland faces serious headwinds, particularly with skilled trades. Competition for labour will intensify due to major infrastructure programs and the preparations for the 2032 Brisbane Olympic and Paralympic Games,” Dyan said.
“Over the next five years, we forecast that construction will start on 202,611 new homes across Queensland. That would be 7.3% higher than the previous five-year period, demonstrating continued growth in housing supply.
“However, the Reserve Bank’s decision this week to raise the cash rate to a 15-year high has further dialled up the pressure on housing affordability and supply.
“Since the National Housing Accord began in July 2024, the state has delivered nearly 11,925 less homes than required, and current forecasts indicate Queensland will be nearly 42,000 homes short of its target over the Accord's five-year term.”
A lack of boots on the ground is also forecast to impact short-term growth in the non-residential space, with activity forecast to decline by 4.3% in FY2026–27, and fall by another 0.9% in 2027–28. However, the sector will remain buoyed by the large pipeline of government-backed projects, including Olympic venues and the infrastructure pipeline, with a forecast $64.8 billion in total works to be delivered in the five years to FY2030–31.
“This forecast underlines the need for urgent action to bring more skilled workers into our industry. We need more people as soon as possible to deliver the generational pipeline of work we’ve been tasked with,” Dyan said.
“Apprenticeship commencements and completions are on the rise, and young people joining our industry need never be out of a job. The state government has made great progress via incentives to help small businesses cover the cost of training apprentices, but more is urgently needed.
“We also need to capitalise on the resources we’ve got in front of us: qualified migrant and interstate builders and tradies. We’ve welcomed the federal government’s move to prioritise construction workers in the visa queue – but there are also roughly 18,400 skilled migrants already here and currently working below their qualified level because of red tape around skills recognition and licensing. The same goes for skilled interstate workers – we need to make it easier for both groups to work in Queensland, while ensuring build quality and worker safety.”