Trust in Construction Industry Builds, But Concerns Persist Amid Climbing Insolvencies and Push for Housing Supply

Key survey findings:

• Over two-fifths (44%) of Australians have a positive perception of the construction industry, up from 32% in 2024.
• However, nine in ten consumers are concerned that builders will cut corners to reduce costs (90%) or deliver homes faster (89%).
• Nearly eight in ten (78%) Australians are concerned about insolvencies in the construction industry, and half (51%) are more concerned about builders going bust before completing a project than they were a year ago.
• Nine in ten (90%) Australians agree that consumers should have access to a register of independently rated, trustworthy construction companies.
• Over six in ten (63%) of people looking to buy a home or investment property would be willing to pay a premium to ensure the property developer, contractor, or building professional had an independent trust rating.
• Three quarters (74%) of NSW residents looking to buy, build or renovate would be willing to pay a premium.

Sydney, Australia – 17 September 2025 – The construction sector’s reputation has rallied over the past 12 months, with over two-fifths (44%) of Australians reporting that they have a positive perception of the industry, up from just a third (32%) in 2024. However, there are growing concerns that builders will cut corners to reduce costs (90%) or deliver homes faster (89%) as housing supply targets put pressure on the industry. 

According to the latest iCIRT consumer research, released today by global data, analytics and technology company Equifax, Australians are increasingly optimistic about the future of the construction industry. A third (32%) of Australians say they expect their perception towards the construction industry to become better over the next 12 months, up from a quarter (25%) in 2024.

Unfortunately, this optimism is being tempered by compounding challenges chipping away at consumer trust. Nearly eight in ten (78%) Australians admit they are concerned about construction insolvencies, while half (51%) are more concerned about builders going bust before completing a project than they were a year ago. Additionally, half (51%) of consumers have little or no confidence in the quality and long-term durability of newly built apartment buildings or build-to-rent developments. 

Brad Walters, General Manager, Commercial at Equifax, said: “It’s clear that many Australians are starting to feel more confident in the state of the property market and the construction industry more broadly. Some of this optimism can in part be attributed to recent interest rate cuts: the iCIRT data shows that although housing affordability remains the most common barrier to buying, building or renovating, the number of consumers citing this as their biggest hurdle has dropped to 48%, down from 57% in 2024.

“On the other side of the coin, however, is the fact that construction insolvencies remain at historically high levels. The construction sector accounted for the highest proportion of insolvencies in July, with 341 insolvencies reported - an increase of 4% from the same month the previous year, and more than twice as high as pre-pandemic levels.

“Concerningly, our research reveals that 53% of Australians believe there aren’t enough protections in place to safeguard consumers from construction companies going bust or delivering poor projects. Given the need for more housing and the Government’s focus on increasing supply, it’s paramount that Australians can rely on construction industry professionals to deliver trustworthy built assets,” said Walters.

Opportunity to boost trust with greater consumer support

To help bolster consumer confidence, the vast majority (89%) of Australians agree that there should be an independent tool to help consumers compare construction professionals, similar to existing safety ratings for cars or appliances. Nine in ten (90%) also say that consumers should have access to a register of independently rated, trustworthy construction companies. 

“The good news is that there are tools available to help consumers make big property decisions with greater confidence, like the Independent Construction Industry Rating Tool (iCIRT),” said Walters.

“We've seen a marked increase in the awareness of iCIRT over the past 12 months. A fifth (20%) of Australians say they are aware of iCIRT - that’s approximately 4.3 million adults, and a significant jump from 12% in 2024. In addition, a further one in six (17%) consumers say they’re aware that there’s an independent rating tool available to help consumers find trustworthy building professionals.”

For construction industry professionals, the growing awareness of and appetite for ratings tools offers the chance to gain a competitive advantage. 

More than six in ten (63%) of those buying a home or investment property would be willing to pay a premium to ensure the property developer, contractor, or building professional had an independent trust rating. On average, Australians who are willing to pay a price premium say they would pay an additional 8.2% if they were confident that the property developer, contractor, or building professional had a trustworthy reputation compared to those with an unknown status.

“The construction industry has an exciting opportunity to ensure the emerging positive perception of the sector continues to grow. Interestingly, nearly six in ten (58%) Australians believe a builder or developer’s reputation is more important than the floor plan or interior fittings of a prospective home - reinforcing the value consumers place on trust. 

“Australians want to feel informed and empowered when making property decisions. By engaging with tools like iCIRT, construction professionals can showcase their trustworthy status, build stronger relationships with Australians looking to build, buy or renovate, and help enhance the reputation of the entire industry,” said Walters. 

iCIRT was developed by Equifax in close consultation with the government, industry and market. The iCIRT rating system gives developers, builders, building and design practitioners, certifiers, trade contractors and consultants a rating, and those able to attain at least three gold stars are able to be recognised on the public-facing register of trustworthy building professionals.

To learn more about iCIRT, visit https://www.icirt.com/ 

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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. 

ABOUT THE RESEARCH
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1044 Australian 18+ adults. Fieldwork was undertaken between 28-30 July 2025. The survey was carried out online. The figures have been weighted and are representative of all Australian adults (aged 18+).