Dwelling commencements rose 7.0% to 52,201 in the June quarter 2026, according to the Australian Bureau of Statistics (ABS) Building Activity release published on 7 October 2026. Completions rose too, and the number of homes under construction climbed again. For anyone planning a car loan around a new home, the figures are a reminder that a build and a car purchase share one budget, and that the timing of each can change what a lender sees.
Quick answer: what the June quarter building activity data showed
In seasonally adjusted terms, more homes were started and finished in the June quarter than in the March quarter:
- Total dwelling commencements rose 7.0% to 52,201, and were up 14.4% on the June quarter 2025
- New private sector house commencements rose 11.6% to 31,707, after a 1.3% fall in the March quarter
- New private sector commencements of other residential dwellings, such as apartments and townhouses, fell 0.1% to 19,126
- Total dwelling completions rose 5.8% to 47,168, up 15.9% on a year earlier
- The value of total building work done rose 1.1% to $45.8 billion
The ABS also reported 248,733 dwellings under construction in the June quarter (original terms), of which 95,447 were new houses. That compares with 244,132 in the March quarter and 224,571 a year earlier.
Dwelling commencements versus approvals: what each number tells you
Building approvals and dwelling commencements measure different stages. An approval is the permit to build. A commencement is counted when work actually starts on site. Approvals are an early signal of what may be built, while commencements and completions show what is really moving through the pipeline.
That is why the two series can point in different directions in the same month or quarter. Our coverage of building approvals for August 2026 showed unit approvals falling sharply while house approvals rose. The June quarter commencements data tells a similar story at a later stage: house starts led the increase, while apartment and townhouse starts were flat.
Houses led the starts, apartments led the finishes
The split between houses and other dwellings matters for borrowers because the two tend to suit different buyers and budgets.
- New private sector house completions rose 1.4% to 27,039 and were 1.9% lower than a year earlier
- New private sector other residential completions rose 13.9% to 19,018, and were 58.6% higher than a year earlier
In plain terms, more apartments and townhouses were finished in the June quarter, while more houses were started. A house started in the June quarter will usually take some time to complete, so many of those households are now in the middle of a build rather than at the end of one.
What more building means for property prices
New supply is one of several things that influence property prices, alongside interest rates, population growth, incomes and lending conditions. The building activity data does not predict prices on its own, and we do not forecast where prices go next.
For context, the latest ABS Total Value of Dwellings release, published on 8 September 2026, showed the mean price of residential dwellings fell by $8,200 to $1,100,400 in the June quarter 2026, while the number of dwellings rose by 54,400 to 11,531,100. Our article on property values falling in the June quarter covers the state results, and our piece on new home prices rising 5.4% explains why building a home can cost more even when established values soften.
If you own a home, a change in its value does not usually change your car loan application directly. Lenders mainly assess your income, expenses and existing debts. Our guide on whether the property market affects a car loan explains where property does and does not come into it.
In the middle of a build: why a car loan needs extra planning
With 248,733 dwellings under construction, many households are juggling a construction loan, rent or an existing mortgage, and the everyday costs of life at the same time. A car loan added during a build is assessed against all of that.
A few points worth thinking through:
- Your repayments may change during the build. Moneysmart notes that interest-only loans may be useful for short-term loans such as a construction loan, and that repayments increase after the interest-only period ends. If your build loan works this way, a car budget set on today's repayment may not hold once the full repayment starts.
- Variations add up. If your builder's price rises, you may need to fund the difference from savings or a larger loan, which leaves less room for a car repayment.
- Two housing costs at once. Paying rent or an existing mortgage while the new home is built is common, and a lender will see both in your bank statements.
- Talk to your home lender first. New debt taken on while a home loan is still being finalised or drawn down can affect that loan, so check before you apply for car finance.
Just moved into a new home: buying a car after settlement
The 5.8% rise in completions means more households have recently moved into a new home. That is often when a car purchase comes up, whether it is a second car for a longer commute or a replacement for one that will not suit the new location.
Before you apply, it helps to look at your finances the way a lender will:
- Your new mortgage repayment is now on record. Lenders count it in full when they work out what you can afford, so build your car budget around the real repayment, not the one you expected.
- Your savings may be lower. A deposit, stamp duty, moving costs and furnishings can reduce savings quickly. Our guide to how much deposit you need for a car loan explains why a buffer still matters.
- Your spending may look different. New homes bring new bills, from council rates to electricity. Our article on electricity bills in 2026-27 shows how those costs feed into a car loan budget.
- Recent statements tell the story. Lenders often ask for recent bank statements, so a few months of steady spending after the move can help. See what lenders check in your bank statements for detail.
Some borrowers consider adding the car to the home loan instead. That can mean a lower rate but a much longer repayment period, so the total interest can be higher. Our guide to using your mortgage to buy a car compares the two approaches.
How a car loan affects your borrowing power during a build
A car loan is counted as an ongoing commitment in any other credit application. If you still need to finalise or increase a home loan, a car repayment reduces the amount a lender may be willing to lend for the house. The reverse also applies: a large construction loan reduces how much you may be able to borrow for a car.
Our coverage of household debt rising in the June quarter explains how lenders weigh existing debt, and our guide to household expenses in loan applications shows how living costs are assessed.
Practical steps if a home and a car are both on your list
- Price the full picture. Add your construction or home loan repayment, rent if you are still renting, and realistic living costs before setting a car budget.
- Run the numbers. Our car loan calculator shows estimated repayments across different loan amounts and terms.
- Consider pre-approval. A car loan pre-approval can show what a lender may offer before you commit to a car.
- Compare rates and lenders. Current car loan rates and our lender profiles help you compare offers on equal terms, including the comparison rate and fees.
- Keep a buffer. Builds can run late and costs can rise, so leave room in your budget rather than borrowing to the limit.
When you are ready, you can explore car loan options with Loanseekers and compare offers from a range of lenders.
What to watch next
The ABS is scheduled to release building approvals for September 2026 on 2 November 2026, the Total Value of Dwellings for the September quarter on 1 December 2026, and the next Building Activity release, covering the September quarter, on 13 January 2027. Each will show whether the rise in dwelling commencements carries through.
Figures in this article are from the ABS Building Activity, Australia (June 2026) and Total Value of Dwellings (June quarter 2026) releases, with general guidance from Moneysmart, all checked on 22 October 2026. This article is general information only and does not take your personal circumstances into account. It is not financial advice.
