Australia’s construction industry is facing growing financial pressure, with property developers and industry leaders warning that rising building costs and a shortage of skilled workers are worsening the country’s housing crisis.

More than 1,500 construction companies in New South Wales reportedly closed during the last financial year, while almost 3,500 firms shut down nationally, according to figures cited from the Australian Securities and Investments Commission.

The Bathla Group, one of New South Wales’ major affordable housing developers, is reportedly facing significant financial difficulties, with debts of around $3.6 billion and concerns over its ability to continue paying workers.

Industry leaders have blamed a combination of rising construction costs, labour shortages, increased interest rates, supply-chain disruptions and government regulations for the difficulties facing builders and developers.

Property industry figures are also calling for changes to Australia’s migration system to help address the shortage of skilled construction workers. They argue that Australia needs more qualified tradespeople alongside stronger domestic apprenticeship programs.

According to data from the National Centre for Vocational Education Research, around 105,790 construction apprentices were in training at the end of 2025, the lowest level recorded in five years.

Industry forecasts indicate Australia will need more than 300,000 additional infrastructure workers by 2030, as well as around 116,000 additional workers in housing construction.

Master Builders Australia has called for more Australians to undertake apprenticeships while supporting a migration system capable of bringing in trade-qualified workers.

Developers say the shortage of workers and rising costs are also pushing up the price of new homes and apartments. One industry representative said the cost of constructing a typical two-bedroom apartment had increased from approximately $460,000 to $950,000 over the past eight years.

With Australia already facing a severe housing affordability challenge, industry leaders are warning that construction costs, labour shortages and delays could make it increasingly difficult to deliver the number of new homes needed across the country.