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Australia’s residential construction sector is under severe structural pressure, with builder insolvencies accelerating even as housing demand remains historically high. Rising material prices, labour shortages, fixed-price contracts signed before cost inflation, and higher financing costs have combined to make many projects economically unviable. In multiple states, construction completions have fallen sharply year-on-year, while major builders have paused new contracts or reduced activity to limit further losses. The gap between build costs and buyer affordability has widened to a point where completing new homes often results in negative margins. These pressures are being compounded by tighter lending standards and a shrinking skilled workforce. Banks have reduced exposure to development finance, requiring higher equity contributions and stricter stress testing, which has constrained new project starts. At the same time, apprenticeship numbers have declined and experienced tradespeople are leaving the industry or relocating overseas, reducing capacity even if demand recovers. The result is a construction slowdown that risks prolonging Australia’s housing undersupply, with long-term implications for affordability, rental availability, and the structure of the residential property market. Australian construction industry crisis, home builders collapsing Australia, housing construction slowdown, building costs Australia, developer insolvencies, residential construction finance, housing supply shortage Australia, property development risks, Australian housing market outlook Disclaimer: The content on this channel is for educational and informational purposes only. We are not financial, legal, or real estate professionals—just housing enthusiasts sharing research, opinions, and observations about the Australian housing market. This content should not be considered professional advice. Always seek qualified advice for decisions related to property, finance, or housing. Australia House Builders Are Collapsing And It’s About to Get Worse