After several years shaped by volatility, cost escalation and capacity constraints, Australia’s construction industry will start to reset in 2026, tempered by challenges but pragmatic.
This is the thinking in a new 2026 Construction Outlook report released last week that says the Australian market is recalibrating for renewed momentum.
“With past events having reshaped the sector’s foundations, what emerges now is not a market in crisis, but one in recalibration: leaner, more deliberate, and increasingly defined by capacity and discipline over scale and speed,” according to Mosaic Property Group which commissioned the report.
With the national construction pipeline now gathering quiet momentum, according to Hubexo, which specialises in construction industry reports, early‑stage project values have begun strengthening, supported by easing inflation, improved consumer confidence and clearer policy settings.
The report found the total value of construction commencements is projected to increase significantly from the last quarter of 2025 to the third quarter of this calendar year. And in terms of volume, the number of projects in 2026 is set to surpass previous levels, suggesting there will be a renewed momentum in residential development across the construction industry.
Mosaic’s managing director Brook Monahan believes volatility is no longer the exception – it’s the environment now so strengthening in-house capability is essential to manage volatility rather than reacting or being exposed to it.
Looking ahead, as deferral and abandonment rates fall to low levels, and stabilisation occurs across most project categories, there is further signalling of a gradual rebound in residential starts. This aligns with industry sentiment: many builders anticipate heavier workloads, while developers are planning further ahead to navigate lingering approval delays, capital access challenges and tighter financial scrutiny.
“On the delivery side, price volatility and subcontractor capacity remain highly unpredictable, particularly under the weight of major infrastructure projects in the lead-up to the 2032 Brisbane Olympics,” Mr Monahan said.
While the industry is shifting toward more deliberate, strategically grounded delivery, labour availability remains the sector’s most significant constraint, particularly across QLD and WA, where shortages continue to impact timelines, pricing and delivery certainty.
About the author
Desi Corbett
Desi is the Editor of Concrete in Australia, at the helm since December 2013, and our weekly news writer since 2016. Focused on concrete and construction for more than 11 years, her expertise in this field forms part of a journalism career spanning three decades. To get in touch please email desi@corbettcomms.com