Home approvals rise 5.1%, but unit approvals still lag
The ABS says 17,948 homes were approved for building in September 2026, a rise of 5.1% on August in seasonally adjusted terms. The lift came from units and apartments, while approvals for houses fell.
One month, two directions
Approvals for private sector houses fell 5.3% to 10,432, the biggest monthly drop since August 2025. Approvals for units, apartments and townhouses jumped 16.6% to 6,579, bouncing back from a 21.7% fall in August. The value of new residential building approved also slipped, down 3.3% to $9.74 billion, so the overall picture is a mixed one rather than a clear turn.
Source: ABS Building Approvals, September 2026. Seasonally adjusted, private sector houses and dwellings excluding houses.
| All homes | 5.1% |
| Houses | -5.3% |
| Units & apartments | 16.6% |
Key numbers
House approvals are holding up: the ABS says they were 9.6% higher than a year earlier and above 10,000 for the ninth month in a row. Units are the weak spot. Even after September's bounce, unit approvals were 20.5% lower than in September 2025, and The Urban Developer reports total approvals were 0.8% below a year earlier.
Why it matters for renters
Approvals are the first step in the pipeline: a home approved today may take a year or more to finish. Units and apartments matter most for renters, because a large share of rentals and shared homes are in this kind of building. Fewer unit approvals now can mean fewer new rentals a couple of years from now.
Industry views are mixed. HIA's Tom Devitt told The Urban Developer that past momentum should keep approvals near current levels until the end of the year. Oxford Economics' Maree Milroy expects a much weaker outlook for home building over the medium term, while Urban Taskforce's Tom Forrest warned that approved homes only get built if projects stack up financially.
For now, rising vacancy is giving renters a little more choice, as we covered in vacancy rates are climbing.
Practical tips
- Renters: new apartment buildings often lease many units at once, which can mean more choice and some flexibility on price nearby.
- Look beyond whole apartments. A room in an existing home can be cheaper and quicker to secure than waiting for new supply.
- Listers: if new stock is coming to your area, keep your room competitive with clear photos, fair pricing and bills spelled out. Quick replies to messages also help.
- Owners: a spare room adds to supply straight away, without waiting years for new buildings.
What it means for you
Renters: the bounce in unit approvals is welcome, but they are still well below last year, so new rental supply is likely to stay limited for some time. Shared homes remain one of the fastest ways to find somewhere affordable. Listers: steady demand for rooms is likely to continue while new building stays slow, but renters are comparing more options, so presentation and fair pricing still decide how fast a room fills.
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- ABS: Total dwelling approvals rise 5.1% in September (2 Nov 2026)
- ABS: Building Approvals, September 2026
- The Urban Developer: Approval figures expose uneven recovery in housing pipeline
Figures are from the sources above at the time of writing. This article is general information, not financial or legal advice.