Media Release – 27 March 2026

The non-residential construction sector is booming, but without serious intervention, South Australia is set to fall short of the National Housing Accord target by nearly 16,000 homes, according to Master Builders Australia’s latest building and construction industry forecasts.

Will Frogley, Master Builders SA CEO, said according to the forecasts we are in for a decline in the value of work done, but that it’s worth noting, it’s coming down from an all-time high, and the forecast is still above 2024/25 figures.

“We know the state government has set an ambitious target of seeing 13,500 homes completed each year,” Mr Frogley said.

“To boost local housing supply, we need to reduce regulation and red tape, boost the local workforce, embrace skilled migration, and grow investment in housing-enabling infrastructure.”

“The current global conflict and fuel crisis will only make it tougher to meet housing demand in South Australia”, he said.

SA’s housing market has been high on the national leader board with nearly 22,000 new homes approved across the state since July 2024.

“That’s a lot of new homes, but with increasing prices due to global conflict and serious workforce shortfalls, growing that build rate is a huge challenge,” Mr Frogley said.

There is some encouraging news out of the forecast. It notes the housing shortfall can be overcome with a focus on:

• • Labour and an expansion of our construction workforce

• • Rapid expansion of SA’s capacity for higher density home building

• • Speeding up installation of enabling infrastructure for new developments. 

Mr Frogley said SA is currently building more houses than ever before to address the housing crisis.

“We were encouraged by the newly re-elected Malinauskas Labor Government’s pre-election commitments to growing our construction workforce.”

“Strongly incentivising employers to engage more apprentices will help to build a strong pipeline of future tradespeople.”

Funding for the Master Builders SA/state government partnership apprentice recruitment program Born to Build, has been doubled. Its focus is squarely set on getting more apprenticeships across SA, including mature-aged.

“Just as crucial though, is securing more skilled people right now,” Mr Frogley said.

“That’s where our Build Connect program comes in. Build Connect has been sourcing skilled migrant workers, and in the last nine months has placed more than 150 much-needed workers into the industry.”

Currently, Build Connect has some 500 vetted, skilled candidates ready to accept jobs in the building and construction industry.

SA Construction Forecast Overview:

• • Non-residential sector is booming: In contrast to the housing struggle, the non-residential sector is thriving. It is expected to grow by nearly 50% in 2025-26, driven largely by a massive 87.5% surge in social, cultural, and health-related building projects

• • Residential targets are slipping: Since July 2024, South Australia has approved 21,929 new homes, leaving the state with a deficit relative to its Housing Accord targets

• • Strategic solutions for housing: Bridging the gap will require the government to prioritise higher-density residential projects and accelerate the installation of essential infrastructure for new developments
  •  A significant ‘step up’ is required: To meet the goal of 83,450 homes, monthly approvals must increase by 20% (to 1,465 per month).

Media contact: Amy Osborne  0435 229 974