Australia’s multi‑unit housing sector roared back to life in February, with approvals almost doubling to their strongest monthly level in nearly eight years, even as global tensions and fuel price spikes threaten to push up construction costs in the months ahead.
New Australian Bureau of Statistics (ABS) data released today shows 9,070 multi‑unit approvals were recorded in February 2026 — a 93.2 per cent jump from January and the highest monthly total since June 2018. The rebound follows two softer months and signals renewed momentum in a segment that has been subdued for several years.
HIA Senior Economist Tom Devitt said the surge reflects underlying demand conditions that remain robust despite economic uncertainty.
“Multi‑unit approvals bounced back after some weakness in December and January,” he said.
“Outside of monthly volatility, this segment of the home building market is also strengthening after several years of depressed activity.”
Detached house approvals also remained elevated, with 9,950 approvals in February — the second‑highest monthly figure in more than three years. This contributed to 29,720 approvals over the quarter, up 6.9 per cent on the same period last year.
Devitt said the recent strength in both segments has been supported by strong population growth, low unemployment and last year’s three interest‑rate cuts. However, he cautioned that February’s figures reflect earlier sales activity and do not yet capture the impact of the Reserve Bank’s two most recent rate hikes or the sharp rise in fuel prices following the outbreak of conflict in the Middle East.
“Much of the attention is focused on the surge in fuel and materials prices and their direct impacts on transport, materials and site costs,” he said. “So far, events overseas represent a price shock, but not yet a supply shock.”
He warned that the duration of global tensions will determine whether inflationary pressures ease or intensify.
“If overseas events are short‑lived, oil prices are likely to stabilise. If they persist, the likelihood increases that the current price shock will feed into future expectations, ongoing inflation and, therefore, even higher interest rates.”
Devitt said the current environment reinforces the need for governments to reduce the cost of delivering new homes.
“It is all the more important now for policymakers to enact meaningful reforms — reducing taxes, pausing further regulatory changes, and addressing structural shortages of skilled trades.”
State-by-state performance
Across all dwelling types, total approvals rose 29.7 per cent in February to 19,022, driven largely by the multi‑unit surge. State results varied:
Victoria led with an 85.1 per cent rise in total dwellings approved. Queensland (+14.7%), South Australia (+12.3%), New South Wales (+10.1%) and Western Australia (+3.1%) also recorded increases. Meanwhile, Tasmania fell sharply (-27.7%).
Value of building work
The value of total building approved rose 14.4 per cent in February to $20.43 billion, driven by a 30.8 per cent increase in residential building to $12.50 billion. Non‑residential building value fell 4.4 per cent to $7.93 billion.
Trend data showed a slight rise in total building value (+0.1%), with non‑residential building continuing to strengthen while residential building eased modestly.
