Apartment living in Australia is often seen as a key solution to Australia’s housing crisis. However, slow apartment building timelines are jeopardising the country’s ability to deliver the apartments it needs. The time it takes to build an apartment is now two and a half times longer than it takes to build a house.

National completion times for apartments have increased from 1.7 years in 2012 to 2.7 years in 2023 and 2024.

Apartments are not the only area of the construction industry experiencing delays. Houses took 7 months to build in 2012 to 2013, compared to just over a year in 2024. In 2012 to 2013, townhouses took nine months to complete, that has now blown out to 1.3 years.

But why has the gap widened and what are some possible solutions?

Shortage of workers

Australia’s construction workforce shortage has been well-documented. It comes at a time when Australian governments have committed to an extensive pipeline of infrastructure projects. There is significant overlap between the workforce required to build apartments and that working on major infrastructure projects. Therefore, in capital cities, major infrastructure projects have tied up workers who would otherwise be working on apartment buildings.

Poor productivity

Over the past 30 years, productivity in the construction sector has tumbled by 12 per cent. Research from the Productivity Commission reveals Australia is building half as many homes per hour worked as it did in 1995.

One factor that has reduced productivity is slow approval processes. A complex approval process means approval for new apartment builds can drag out for a decade or more. Only a fraction of this time is spent on construction.

Danielle Wood is the chair of the Productivity Commission. She says governments must consider the impact of regulations they introduce on productivity in the construction sector.

“The sheer volume of regulation has a deadening effect on productivity. If governments are serious about getting more homes built, then they need to think harder about how their decisions unnecessarily restrict housing development and slow down the rate of new home building,” Ms Wood told the Sydney Morning Herald.

Increased design regulation

In recent years, construction industry regulations have increased, something which experts say has slowed down new apartment builds. For example, Victoria introduced new guidelines for design control in 2021. These include community green space, façade materials and street integration.

What can be done?

Experts say that regulatory processes could be better streamlined. Katie Stevenson is the Executive Director of the Property Council Of NSW. She questions whether regulations at present are fulfilling their purpose.

“The purpose of regulations is to enable good outcomes, rather than add additional obstacles or burdens that are not worthwhile for the impact that they have,” Ms Stevenson told the Sydney Morning Herald.

“The impact is that homes are slower to deliver, and they cost more because time is money in the development process and interest continues to accrue while the development application is sitting on someone’s desk.”

Experts recommend speeding up local council approval processes. They say all governments should support an independent review of building regulation including local council rules around new homes.

To increase the construction workforce, greater opportunities should be provided for migrants to enter the sector. Occupational licensing arrangements should also be consistent across the country.

Increased take-up of technology in the construction industry could also enhance the sector’s efficiency.
As the demand for skilled workers grows, there’s never been a better time to build your future in construction.

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Article References

Power, E (22 May 2025) ‘‘A lot tougher’: The type of home build that has blown out most’, Sydney Morning Herald, accessed 27 May 2025.

Wright, S (16 February 2025) ‘Slow home building holds back Australia as Reserve Bank meets to consider rates cut’, Sydney Morning Herald, accessed 27 May 2025.