Canberra Housing Approvals Plunge 51% Despite $13.5B Construction Pipeline

Canberra recorded a steep fall in dwelling approvals from 4,496 in 2023 to 2,183 in 2024, according to data reported by the Canberra Times.

The decline arrives at a time when the territory’s economy continues to post strong employment numbers and above-average earnings. High house prices and fewer new homes add pressure on workers who already face the nation’s highest average weekly earnings of $2,021.

Workforce and Output Indicators

The ACT posted an unemployment rate of 2.9 percent in 2024, well below the national 4 percent mark, with a workforce participation rate of 72 percent. Gross Territory Product reached approximately $25.28 billion in 2022/23, placing Gross State Product per capita third highest among Australian jurisdictions. The private sector accounts for 64 percent of all ACT jobs, while the territory’s overall economy benefits from these participation and output levels.

Business investment, however, contracted 9.5 percent in 2022-23, the only negative result recorded by any Australian jurisdiction that year. Construction activity offsets some of that weakness through $13.5 billion worth of projects planned or underway that support 15,800 local jobs.

Housing Market Pressure Points

Median house prices reached $893,907 by December 2025, compounding the effect of fewer approvals on supply. The combination of elevated prices and reduced approvals limits options for new residents and existing households seeking to move within the market.

Officials and industry groups will track the next round of building approvals and investment data to gauge whether the current pipeline sustains momentum or whether further policy adjustments are required to address the shortfall in new dwellings.