Australians Report Just 23% of New Builds Finished on Time as Planning Delays and Business Exits Impact Construction Capacity

SYDNEY, AUSTRALIA – 17 September 2026  – Australia’s housing supply ambitions are confronting a stark reality, with new research revealing that under a quarter (23%) of Australians following active projects in the past year1 say it was completed on time. The findings are published in the inaugural iCIRT Construction Index: Capacity Report, a comprehensive new series by iCIRT that synthesises nationally representative YouGov consumer research with Equifax Australia commercial credit insights.  

The report data notes capacity concerns across Australian residential construction, where physical site bottlenecks, trade shortages, construction collapses, and tightening small-business liquidity are shrinking subcontractor capacity faster than it can be replaced. 

In the current environment, these capacity pressures are likely accentuated by uncertainty following recent tax changes and by rising construction and borrowing costs that are adding to financial strains.

“Construction underpins a good portion of Australia’s broader economic activity and workforce, but our research shows the sector is facing constraints on the ground,” said Brad Walters, General Manager Commercial at Equifax Australia.

“When consumers managing or following active projects in the past year1 report that just 23% of new builds are finishing on schedule, the impacts naturally extend beyond individual site delays. They can ripple through to housing affordability, forward productivity, and national supply targets. What the index highlights is that supporting Australia's broader economic goals requires looking closely at the capacity bottlenecks and financial friction facing our local builders and trades,” added Walters.

Planning Bottlenecks and Trade Shortages Stalling Builds
According to the research, planning approvals and site preparation (including council delays and excavation) represent the single largest bottleneck in the residential delivery pipeline, cited by over a fifth (22%) of Australians - nearly double the delay impact of structural framing (11%) or internal fit-outs (12%).  

Operational delays seem to be further exacerbated by acute workforce scarcity:

• Seven in ten (71%) of Australians believe worker shortages somewhat or critically delay new housing completions, with three in ten (31%) believing that labour constraints are critically impacting housing supply.  
• Over a third (35%) of Australians identify a lack of reliable, qualified contractors as a primary barrier to buying, building, or renovating.  
• Major renovations achieved an on-time completion rate, with three in ten (29%) Australians managing or following active renovation projects in the past year1 saying they were completed on schedule, compared with just under a quarter (23%) for new home builds.

Brad Walters said, "Australia is playing an intense game of catch-up on the housing supply needed, but physical site execution appears to be struggling to keep pace with housing target ambitions. What our research shows is that the delivery bottleneck is not occurring at the tail-end of builds; it is stalling right at the front gate with council planning and site preparation. When you overlay these factors with trade and skilled worker shortages, and rising construction costs, projects can inevitably run over time and over budget."

Subcontractor Capacity Contracting Under Financial Strain
Behind physical site delays lies some financial friction across small to medium (SME) construction businesses. Equifax Business Market Pulse insights for Q2 2026 revealed that while large construction enterprises recorded moderate credit demand growth (+3% YoY), SME construction credit demand fell -3.8% YoY.  

This contraction was driven by a -6.5% YoY drop in SME asset finance and growth capital, as small trade businesses deferred equipment and machinery purchases. Capital pauses were most pronounced in Victoria (-9% YoY) and New South Wales (-6.7% YoY). 

Furthermore, the data shows that rising operational costs and regulatory shifts are shrinking market capacity:

• New small trade entrants dropped -19.0% YoY in Q2 2026, while small trade business exits surged +58.0% YoY (and overall construction company exits doubled, up +114.0% YoY).  
• New ATO tax default disclosures increased +43.0% YoY across construction, while SME insolvencies rose +9.0% YoY.  
• Early trade payment arrears rose +4.7% YoY, spiking noticeably late in Q2 2026 as businesses faced cash flow pressure, which is concerning in light of the Payday Super reforms that are now in effect.

Brad Walters added, "We are seeing small trade exits surge at +58% while new entrants are falling by -19%, meaning subcontractor capacity has effectively stalled, during a period where the industry needs more. Larger developers with deep balance sheets can leverage scale, but SME builders are deferring equipment investment, likely to protect working capital."  

Fragile Household Budgets and Declining Build Intentions
The report also reveals that cost overruns stemming from build delays appear to be colliding with household budget capacity. According to the data, over a third of Australians say they can absorb no more than a 1% to 5% cost variance before being forced to delay, scale back, or indefinitely suspend their new home construction (35%) or major renovation (37%) project. Further to this, only 5% to 7% of Australians possess the financial buffer to absorb cost increases above 15%.

This lack of budget flexibility is impacting forward demand:

• Homebuilding Intentions Halved: The proportion of Australians intending to build a new home in the next 5 years halved from 10% in 2025 to 5% in 2026.
• Overall Market Activity Down: Australians looking to buy, build, or renovate in the next 5 years dropped from 51% in 2025 to 38% in 2026.  
• Multi-Unit Durability Fears: Only  one in ten (10%) of Australians feel 'Very Confident' in the structural quality and long-term durability of newly built apartments or build-to-rent developments, down from 15% in 2025. 

Brad Walters concluded, “In an environment where homebuilding intentions have nearly halved and households have little capacity for unexpected budget inflation, trust and transparency become the primary differentiators. When Australians report that only 7% of builds finish on time, property buyers cannot afford to enter contracts blindly. Independent due diligence, such as an iCIRT rating, can give buyers visibility into a builder’s resilience and track record before committing.” 

The full iCIRT Construction Index: Capacity Report is available here or at www.icirt.com.

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ABOUT iCIRT
iCIRT (Independent Construction Industry Rating Tool) provides a rigorous, objective assessment of a construction business's track record, financial backing, credentials, capability, and integrity. Developed by Equifax in close consultation with government and industry, iCIRT formed part of the NSW Government's Construct NSW transformation strategy to rebuild public trust in residential construction. It has expanded nationally and is the only approved rating entity in the ACT for developer licensing mandates.

ABOUT THE RESEARCH
All consumer survey figures are derived from online fieldwork conducted by YouGov Plc between 30 July and 4 August 2026. Total sample size was 1,063 Australian adults (aged 18+). The responding sample was weighted to census profiles to ensure national representation across age, gender, state, and capital city.

ABOUT EQUIFAX INC.
At Equifax, we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit www.equifax.com.au or follow the company’s news on LinkedIn.

Equifax Media Contact
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NOTE TO EDITORS
Equifax measures the volume of credit applications for business loans, asset finance and trade credit that go through the Equifax Commercial Bureau by financial services credit providers in Australia. Based on this, it is considered to be a good measure of intentions to acquire credit by businesses. This differs from other market measures published by the RBA/ABS, which measure new and cumulative dollar amounts that are actually approved by financial institutions. 

DISCLAIMER
Purpose of Equifax media releases:
The information in this release does not constitute legal, accounting or other professional financial advice. The information may change, and Equifax does not guarantee its currency or accuracy. To the extent permitted by law, Equifax specifically excludes all liability or responsibility for any loss or damage arising out of reliance on information in this release and the data in this report, including any consequential or indirect loss, loss of profit, loss of revenue or loss of business opportunity.