The total value of building work done reached $139.6 billion last year. This growth masks a clear shift toward industrial and warehouse projects, while residential commencements fell.
Key Takeaways
- In 2022-23, commercial office construction commencements value was $5.6 billion, down 11% from peak
- The total value of building work done in Australia reached $139.6 billion in 2022-23, up 8.2% from the previous year
- In 2023, Australia saw 167,800 dwelling commencements, a 4.5% decline from 2022 peak
- In 2022-23, there were 7.8 lost time injury claims per million hours worked in construction, down 4% from prior year
- In June 2023, the Australian building and construction industry employed 1,189,100 persons, marking a 2.4% increase from the previous year
Australian building approvals rose, signalling stronger construction demand across key sectors nationwide.
Related reading
01 · Category
Commercial and Non-Residential24 stats
01
In 2022-23, commercial office construction commencements value was $5.6 billion, down 11% from peak
02
Retail building approvals totaled 4,200,000 sqm floor space in 2023, led by shopping centres
03
Industrial and warehouse construction value hit $14.7 billion in 2022-23, up 19% on e-commerce
04
Hotel and motel building work done was $3.2 billion in 2022-23, recovery from tourism slump
05
Aged care facilities construction reached $4.1 billion in 2023, 12% growth on demographics
06
Data centre builds valued $2.8 billion in 2022-23, with 15 new facilities approved
07
University campus expansions cost $3.9 billion in 2022-23 across top institutions
08
Factory construction floor space approvals were 6.8 million sqm in 2023, manufacturing hub shift
09
Sports stadium projects totaled $2.4 billion in progress in 2023, including upgrades
10
Childcare centre approvals numbered 1,200 new facilities in 2023, $1.1 billion value
11
Sydney's commercial building pipeline was 1.2 million sqm in 2023, offices 45%
12
Melbourne non-residential commencements value $12.3 billion in 2022-23, industrial dominant
13
Brisbane commercial construction up 14% to $8.7 billion ahead of Olympics
14
Perth office vacancy drove $1.9 billion retrofit projects in 2023
15
Adelaide saw $2.1 billion in defence-related non-residential builds in 2022-23
16
Rail infrastructure construction valued $18.9 billion in 2022-23 nationally
17
Port expansion projects cost $4.6 billion in 2023, key trade gateways
18
Water supply and sewerage engineering work was $9.2 billion in 2022-23
19
Telecommunications tower builds numbered 2,400 new sites valued $1.8 billion in 2023
20
Defence base constructions totaled $7.3 billion in 2022-23 under AUKUS plans
21
Green building certifications (Green Star) issued for 45 commercial projects covering 1.1M sqm in 2023
22
Commercial vacancy rates influenced 22% cut in new office starts to 450,000 sqm in 2023
23
Logistics parks development reached 850,000 sqm approvals in 2023, $3.5b value
24
Hospital expansions valued $5.8 billion in 2023, including 2,500 new beds
Interpretation
Commercial and Non-Residential Interpretation
Australia's construction scene is telling a very modern tale: while our office towers are having an existential crisis, our warehouses are absolutely thriving, proving we’d much rather build places to store our online shopping than to actually go and work.
02 · Category
Economic Value and Output26 stats
01
The total value of building work done in Australia reached $139.6 billion in 2022-23, up 8.2% from the previous year
02
Residential building contributed $88.4 billion to the total construction value in 2022-23, representing 63.3% of activity
03
Non-residential building work done was $31.2 billion in 2022-23, with a 4.1% annual growth
04
Engineering construction output totaled $102.3 billion in 2022-23, driven by transport projects at 42%
05
Construction industry's GDP contribution was 9.1% or $172 billion in 2022-23 chain volume terms
06
Private sector building approvals value hit $120.5 billion in 2023 calendar year, up 12%
07
Public non-residential construction spending increased to $18.7 billion in 2022-23, 7.3% growth
08
Total construction investment as percentage of GDP was 8.7% in 2023, highest since 2012
09
Detached house construction value was $52.1 billion in 2022-23, comprising 59% of residential sector
10
Multi-residential building work reached $36.3 billion in 2022-23, up 15.4% year-on-year
11
Road and bridge engineering construction valued $43.2 billion in 2022-23, 22% of engineering total
12
Construction exports, mainly prefabricated buildings, totaled $4.8 billion in 2022-23
13
Inflation in construction costs rose 7.2% in 2023, impacting project margins by 3-5%
14
Private gross fixed capital formation in construction was $145.2 billion in 2022-23
15
Office building construction value declined 2.1% to $9.4 billion in 2022-23 amid remote work trends
16
Retail construction output was $7.8 billion in 2022-23, stable despite e-commerce growth
17
Renewable energy infrastructure construction hit $12.6 billion in 2022-23, up 28%
18
Total commencements value for building work was $178.4 billion in calendar 2023
19
Hospital and health construction valued $6.3 billion in 2022-23, 10% growth post-COVID
20
Educational building work done reached $8.9 billion in 2022-23, driven by school upgrades
21
Mining-related construction output was $25.4 billion in 2022-23, 25% of non-building
22
Construction imports for materials totaled $28.7 billion in 2022-23, up 11% due to supply chains
23
Profit margins in construction firms averaged 4.2% in 2022-23, down from 5.1% pre-pandemic
24
Value of work done per construction business averaged $349,000in 2022-23
25
New South Wales accounted for 30.2% of national construction value at $42.1 billion in 2022-23
26
Victoria's construction output was $37.8 billion in 2022-23, 27.1% of total despite lockdowns
Interpretation
Economic Value and Output Interpretation
Australia's construction sector is booming with the vigour of a speculative gold rush, yet it's sweating under the pressure of rising costs and tighter margins, proving that even when you're building a $139.6 billion future, the foundation is never as solid as it looks.
03 · Category
Residential Construction26 stats
01
In 2023, Australia saw 167,800 dwelling commencements, a 4.5% decline from 2022 peak
02
Detached houses made up 69.4% of dwelling approvals with 116,500 starts in calendar 2023
03
Semi-detached, row and terrace houses approvals totaled 25,100 units in 2023, down 8%
04
Apartments, units and flats commencements were 26,200 in 2023, 15.6% drop year-on-year
05
Average cost to build a new detached house rose to $368,700in Q3 2023, up 7.2%
06
Median time to complete a residential build increased to 14.2 months in 2023 from 12.1 in 2021
07
62% of new homes built were detached in FY2023, concentrated in outer suburbs
08
Residential building approvals in Queensland hit 48,200 dwellings in 2023, 29% of national total
09
Western Australia recorded 22,400 house approvals in 2023, up 15% driven by mining boom
10
Social housing completions reached 12,800 units in 2022-23 under National Housing Accord
11
Prefabricated homes accounted for 4.2% of residential starts in 2023, up from 2.8% in 2020
12
Home renovations value totaled $42.3 billion in 2022-23, 48% of residential sector
13
Average floor area of new detached houses was 219 square metres in 2023, down 1.5% from 2022
14
1.2 million households were in rental accommodation needing upgrades, driving $15b reno spend
15
Bushfire-resistant new homes built numbered 18,400 in high-risk areas in 2023
16
Flood-resilient residential retrofits completed 9,200 in Queensland post-2022 floods
17
Tiny homes and modular units approvals grew 22% to 3,100 in 2023
18
Owner-builder residential permits issued totaled 14,700 in 2022-23, 9% of total dwellings
19
Residential construction labour intensity was 45% higher than commercial in 2023
20
New dwelling completions reached 170,200 in 2022-23, sufficient for 1.15 years supply
21
Victoria's residential approvals fell 12% to 38,900 dwellings in 2023 due to rates
22
NSW saw 47,200 residential starts in 2023, but cancellations hit 8.2%
23
South Australia's house approvals rose 18% to 11,200 in 2023 on population growth
24
Tasmania residential construction value up 9.4% to $3.2 billion in 2022-23
25
Northern Territory dwelling approvals totaled 1,100 in 2023, focused on Darwin suburbs
26
ACT residential building work was $2.1 billion in 2022-23, apartments 42% share
Interpretation
Residential Construction Interpretation
Despite the heroic national effort to build our way out of a housing crisis, the 2023 data reveals a market stubbornly clinging to its spacious, slow, and costly detached-house dreams, while affordability, density, and speed whisper urgently from the sidelines.
More related reading
04 · Category
Safety, Sustainability, and Regulations25 stats
01
In 2022-23, there were 7.8 lost time injury claims per million hours worked in construction, down 4% from prior year
02
92% of construction fatalities in 2023 were male workers, with falls from height causing 28%
03
Construction sites recorded 24,500 serious injuries in 2022-23, rate of 21.3 per 100,000 workers
04
Compliance with Work Health and Safety regulations improved to 87% audit pass rate in 2023
05
35% of construction firms adopted zero-harm safety programs in 2023, reducing incidents 12%
06
Carbon emissions from construction dropped 8.2% to 22.4 Mt CO2-e in 2022-23 via efficient materials
07
42% of new builds met 7-star NatHERS energy rating in 2023, up from 25% in 2020
08
Waste recycling rate in construction reached 76% in 2023, diverting 12 million tonnes from landfill
09
Building Code compliance fines totaled $45 million in 2023 for 2,800 violations
10
Mental health claims in construction rose 15% to 4,200 cases in 2022-23, prompting programs
11
Solar PV installations on commercial buildings hit 1.2 GW capacity in 2023
12
68% of large projects used BIM (Building Information Modelling) in 2023, improving safety 18%
13
Heat stress incidents reported 1,800 in summer 2022-23, leading to new hydration regs
14
Timber use in construction increased 22% to 5.1 million cubic metres sustainably sourced in 2023
15
National Construction Code updates in 2023 mandated 10% embodied carbon reduction
16
1,450 silica dust exposure violations fined $12m in 2023 under new regs
17
Green lease adoptions in commercial buildings reached 55% in 2023, cutting energy 15%
18
Drone usage for site safety inspections grew 40% to 12,000 deployments in 2023
19
Water usage efficiency improved 14% in builds, saving 2.3 billion litres in 2023
20
78% of firms trained workers on asbestos regs, preventing 320 exposures in 2023
21
EV charging stations mandated in 25% new commercial parks built in 2023
22
Noise complaint resolutions on sites hit 95% within 48 hours under 2023 regs
23
Biodiversity net gain rules applied to 120 projects, offsetting 4,500 hectares in 2023
24
Prefab construction reduced site accidents 27% across 450 projects in 2023
25
Digital safety tracking apps used on 62% of sites, logging 5.2 million checks in 2023
Interpretation
Safety, Sustainability, and Regulations Interpretation
The Australian building industry is making progress on multiple fronts—from safety and emissions to technology and waste—but the persistent human cost and high stakes remind us that this progress, while commendable, remains a complex scaffold of hard-won gains and sobering realities.
05 · Category
Workforce and Employment30 stats
01
In June 2023, the Australian building and construction industry employed 1,189,100 persons, marking a 2.4% increase from the previous year
02
As of 2022-23, there were 399,800 businesses operating in the construction industry in Australia, accounting for 12.7% of all businesses
03
The average weekly earnings for full-time adult employees in construction rose to $2,293.80in November 2023, up 5.1% year-on-year
04
In 2023, 15.2% of construction workers in Australia were aged 15-24, while 24.7% were over 55, indicating an aging workforce
05
Female participation in the Australian construction workforce stood at 13.4% in 2022, with growth in roles like project management
06
Over 250,000 construction workers in Australia were apprentices or trainees as of 2023, comprising 21% of the total workforce
07
The construction industry had a job vacancy rate of 4.2% in February 2024, higher than the national average of 2.8%
08
In 2022-23, 68,400 construction jobs were added in Australia, driven by residential building demand
09
Labour productivity in construction declined by 1.8% in 2022-23, lagging behind other sectors at -0.5%
10
42% of construction firms reported skill shortages as their top challenge in 2023, per industry survey
11
Indigenous employment in construction reached 3.1% in 2023, up from 2.5% in 2020
12
Migrant workers made up 28.6% of the construction workforce in major cities like Sydney and Melbourne in 2022
13
Overtime hours in construction averaged 4.2 hours per week per worker in 2023, highest among industries
14
17,500 new apprentices commenced in construction in 2022-23, a 12% increase from prior year
15
Unemployment rate in construction was 3.1% in December 2023, below the national rate of 4.0%
16
Part-time workers in construction grew to 18.3% of employment in 2023 from 15.1% in 2019
17
Construction managers numbered 45,200 in 2023, with median salary of $148,000annually
18
9.4% of construction workers held a bachelor degree or higher in 2022, up from 7.2% in 2016
19
Underemployment in construction was 5.2% in 2023, lower than the economy-wide 6.5%
20
Self-employed contractors in construction totaled 412,000 in 2023, 34.6% of the workforce
21
Youth allowance recipients in construction apprenticeships increased 8% to 22,400 in 2023
22
Disability employment in construction was 4.8% in 2022, with support programs aiding 12,000 workers
23
Regional construction employment grew 3.7% to 456,000 in 2023, outpacing metro growth of 1.9%
24
Bricklayers faced a shortage of 15,200 workers nationally in 2023, per skills assessment
25
Women in trade roles like carpentry reached 2,800 in 2023, a 25% rise since 2018
26
Construction workforce turnover rate was 18.5% in 2022-23, driven by wage competition
27
76,200 construction workers were on temporary visas in 2023, mainly from India and Philippines
28
Electricians in construction numbered 92,400 with 4,500 vacancies unfilled in Q4 2023
29
Average age of construction workers was 41.2 years in 2023, with 28% over 50
30
Vocational training completions in construction hit 145,000 in 2022, up 6% year-on-year
Interpretation
Workforce and Employment Interpretation
Australia's construction industry is booming with more workers, higher wages, and a welcome influx of apprentices and diversity, yet it's being held together by overtime, migrant labor, and sheer grit as it desperately tries to outbuild a crippling skills shortage and an aging workforce faster than its productivity is declining.
Reference
Cite This Report
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APA
Gabrielle Fontaine. (2026, February 13). Australian Building Industry Statistics. Gitnux. https://gitnux.org/australian-building-industry-statistics
MLA
Gabrielle Fontaine. "Australian Building Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/australian-building-industry-statistics.
Chicago
Gabrielle Fontaine. 2026. "Australian Building Industry Statistics." Gitnux. https://gitnux.org/australian-building-industry-statistics.
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