Skilled trade shortages remain widespread across Australia, with every housing market and every trade recording a shortage in the September quarter of 2026, according to the latest HIA Trades Report.
The report, released today, provides a quarterly assessment of skilled labour availability in residential construction.
It also draws on a survey of home builders to identify demand pressures.
HIA Senior Economist Tom Devitt said demand for workers has been supported by the recovery in home building activity over the past year.
The HIA Trades Availability Index improved modestly from -0.59 in the June quarter to -0.50 in the September quarter.
Devitt said the result is broadly consistent with the shortage recorded a year earlier.
It indicates that skilled trades remain considerably harder to secure than before the pandemic.
Cost pressures are also building. In the year to September 2026, trades prices rose by 6.6 per cent, the fastest annual rate in four years and more than double the rate of wage growth across Australian industries more broadly.
Devitt said recent disruptions to the housing market will not reduce demand for skilled trades this year, because work on the ground has not yet been affected by rising interest rates and increased taxes.
He cautioned, however, that the outlook is less certain beyond that.
“The combination of rising labour, materials and land costs, while prices in the established market decline, represents a concerning potential headwind on new home building next year and beyond.”
Demand from other sectors, including renovations, public infrastructure and data centres, is expected to keep sourcing workers difficult.
HIA estimates that Australia requires an additional 83,000 skilled tradespeople to build the homes Australians need.
The report found regional and metropolitan markets are all affected, although the severity varies.
The most acute shortage was in regional Queensland (-0.86), followed by regional South Australia (-0.83). Brisbane and Perth both recorded -0.76.
Adelaide (-0.60), regional Victoria (-0.54), regional Western Australia (-0.50), Sydney (-0.47) and regional New South Wales (-0.43) were next.
Melbourne was the only market near equilibrium, at -0.06.
Every trade also recorded a shortage. Bricklaying was the most affected at -0.94, followed by ceramic tiling (-0.77), and carpentry and roofing, which both scored -0.71.
The most modest shortages were in site preparation (-0.19) and electrical work (-0.22).
The report noted that electrical shortages have worsened dramatically over the last six months.
The findings come as the federal government moves to ease pressure on the construction workforce through migration.
The Minister for Home Affairs, Tony Burke, recently announced that skilled construction workers will be prioritised alongside doctors and nurses for skilled migration.
Devitt welcomed the decision as a recognition of the importance of residential construction to the national economy.
He said migration has an important role to play in expanding the country’s capacity to build homes, given that unemployment remains low and the industry faces a significant shortage of skilled workers.
He stressed, however, that migration should not be seen as a substitute for training at home.
It must complement continued investment in the domestic workforce, including greater support for apprentices, training providers and the businesses that employ them and provide on-site experience and supervision.
Devitt said the industry must keep its focus on the long term, even as conditions soften in the near term.
He added: “Australia needs to expand its construction workforce to meet the nation’s housing needs.”
