NSW Housing Starts Rise 14% to 53,753 Amid Rate Hikes

New South Wales recorded 53,753 residential starts in the 2025/26 financial year. This represents a 14 percent increase over the previous period. The data comes from the HIA Housing 100 report.

Market conditions remained difficult due to three interest rate hikes. Consumer confidence weakened, and tax changes were introduced in the Federal Budget. Despite these headwinds, output from the largest builders stayed stable.

Top Builders Maintain Output Levels

Parkview Constructions was the largest multi-unit builder in Australia for 2025/26. It also held the number one position in New South Wales. The company started 2,375 new dwellings, all of which were multi-units.

NEX Building Group followed with 1,742 new dwelling starts in the state. Of these, 1,726 were detached homes and 16 were semi-detached. Campbell Property Group ranked third with 1,211 starts, all detached.

The market share of the top 20 NSW builders dropped from 27 to 23 percent. This decline occurred between the 2024/25 and 2025/26 financial years. Total starts from these firms remained relatively unchanged at 12,555.

High Costs Constrain Sydney Growth

Sydney housing demand remains elevated, but capacity constraints limit growth. The high cost of delivering new homes acts as a barrier. Shovel-ready land is expensive, which slows down construction projects.

Apartment construction has fallen since the mid-2010s. Greenfield land costs remain prohibitively high for many developers. The industry states it can scale up if barriers are removed.

Industry Calls For Supply Boost

HIA Executive Director Brad Armitage noted the need for more housing. He stated the industry is capable of meeting demand challenges. Governments must remove barriers to increase housing supply across the state.