01
What Is This Report Measuring?
Australian Property Network tracks six areas of government regulation that shape what happens in the property market. We measure each one using 15 years of data — that way, we can tell whether things are tighter or looser than usual, not just what the current rule says.
🏗️ Building compliance costs
How much extra it costs to build a home to current government standards, compared to what it cost before those standards were introduced.
🗺️ Planning approvals
What the planning system is currently approving — mainly whether approvals favour traditional houses or apartments and higher-density buildings.
🏠 Social housing availability
What share of all homes in Australia are social housing — government-owned properties available to people who cannot afford private rent or a mortgage.
🏦 Borrowing restrictions
How hard the banking regulator has made it to get a home loan — specifically, the stress test lenders must apply to every borrower.
🌿 Environmental compliance
The added cost of meeting the government's building and energy standards — including insulation, solar-readiness, and energy efficiency requirements.
📋 Tenancy regulations
The laws that govern the relationship between landlords and tenants — including what notice landlords must give, what standards they must meet, and what they can and cannot do.
How we score each area
Each area gets a score based on how it compares to the 15-year average. A score above zero means conditions are tighter or more restrictive than usual. A score below zero means conditions are looser or more relaxed than usual. A score near zero means things are about normal.
02
Why New Homes Cost More to Build Than They Used To
In 2022, the federal government updated the National Construction Code — the rulebook for how all new homes must be built in Australia. The main change was that new homes now need to achieve a higher energy rating (7 stars instead of 6) and meet new standards for how energy is used across the whole home.
These are worthwhile goals — homes built to the new standard will be more comfortable and cheaper to run. But meeting the new standard costs more to build. Our data shows this is now the largest increase in building compliance costs recorded in 15 years.
Chart 1 · Added building cost since 2016 — how it has stepped up with each new rule change
1
Before 2016 — baseline
The pre-2016 National Construction Code (BCA 2010) set the baseline. A 5-star energy rating was standard. No added cost above the baseline.
2
2016 — 6-star energy rating introduced
NCC 2016 raised the minimum energy rating to 6 stars. This added approximately 1.45% to the cost of building a new home.
3
2019 — further changes
NCC 2019 introduced additional requirements for steel-framed construction. The compliance premium edged up slightly to around 1.59%.
4
2022–present — 7-star energy rating + whole-of-home budget
NCC 2022 — the current standard — requires a 7-star energy rating and a whole-of-home energy budget. The compliance premium has jumped to 3.42% above baseline. This is the highest it has ever been.
Not every state has adopted all of the new rules yet. NSW is using its own building standards framework instead of part of the national code. Western Australia has delayed some requirements. This means the exact cost varies depending on where you are building — but the national trend is clearly upward.
03
Why Getting a Home Loan Is Harder Than It Used To Be
To get a home loan in Australia, you don't just need to be able to afford your repayments at today's interest rate. Your bank is required by the banking regulator (APRA) to check that you could still afford the repayments if the interest rate was 3 percentage points higher than it actually is. This is called the serviceability buffer.
How the serviceability buffer works
If you are applying for a loan at an interest rate of 6%, your bank must check that you could still afford it at 9%. This means many people who could comfortably manage repayments at the actual rate are told they cannot borrow as much — or cannot borrow at all.
The buffer has been set at 3 percentage points since late 2021 — that is more than three years ago. Before that it was 2.5 percentage points, and before that 2 percentage points. The current setting is the most restrictive in 15 years of data. In February 2026, an additional rule was introduced that limits how many high-debt loans banks can issue.
Chart 2 · The APRA serviceability buffer over time — higher means harder to borrow
What this means in practice: Buyers who are financially capable of managing their repayments are still being knocked back because they cannot pass the stress test. This affects first home buyers, upsizers, and investors alike. It is a deliberate policy setting — not something that will change unless APRA decides to lower the buffer.
04
Why More People Are Competing for Private Rental
Social housing — government-owned or managed homes available to people who cannot afford private rent — is an important safety net. When it is abundant, it absorbs vulnerable households and reduces pressure on the private rental market. When it is scarce, those households compete for private rental instead.
Here is what has happened over the past 15 years: social housing has grown by about 30,000 homes. But total housing in Australia has grown by more than 1.8 million homes. So while there are more social homes than there were in 2011, there are far fewer as a share of the total. Social housing now makes up just 4.26% of all homes — its lowest share in 15 years.
Chart 3 · Social housing as a share of all Australian homes — a 15-year story
1
Borrowing restrictions stop some buyers from purchasing
People who want to buy but can't get finance remain in the rental market longer.
2
Social housing availability is declining as a share of total stock
Lower-income households who might previously have accessed social housing are competing in the private rental market instead.
3
Both groups end up in the same private rental pool
More people are chasing the same private rental properties — from both ends of the income spectrum simultaneously.
4
Landlord compliance costs are rising at the same time
New tenancy laws in VIC, NSW and QLD mean it costs more to operate a rental property — which tends to push smaller landlords out and consolidate ownership among larger operators.
05
Key Terms Explained
Glossary — terms used in APN property policy analysis
National Construction Code
The rulebook that sets the minimum standards for how all new buildings in Australia must be constructed — including energy efficiency, safety, and accessibility requirements.
APRA
The Australian Prudential Regulation Authority — the government body that regulates banks and sets rules about how they can lend money, including the serviceability buffer.
Serviceability buffer
The extra percentage points added to the actual interest rate when a bank checks whether you can afford a loan. Currently 3 percentage points above the contract rate.
Social housing
Homes owned or managed by the government (public housing) or by not-for-profit community housing organisations, available to people on low incomes or in housing need.
NatHERS star rating
The energy efficiency score for a home, measured from 0 to 10 stars. Higher stars mean less energy is needed to heat and cool the home. NCC 2022 requires a minimum of 7 stars for new homes.
Tenancy law
State-level legislation that governs the rights and obligations of landlords and tenants — covering things like rental increases, notice periods, property standards, and dispute resolution.
Stamp duty
A state government tax paid when purchasing a property. The amount varies by state and by the purchase price. It is typically one of the largest upfront costs for property buyers.
Planning approval
Permission from a local or state government authority to build a particular type of property in a particular location. Different rules apply to houses, apartments, and mixed-use developments.
06
What to Keep in Mind Right Now
Key takeaways for property market participants
✅
New homes carry a higher floor price. NCC 2022 compliance costs are embedded in the construction cost of every new dwelling built to current standards. This is structural, not cyclical.
✅
Borrowing restrictions are deliberate policy, not temporary. APRA's 3-percentage-point buffer will stay in place until APRA decides to lower it. Plan your finance assumptions accordingly.
✅
Rental demand pressure is structural. Both borrowing restrictions and declining social housing availability are pushing more people into private rental. This is not a short-term trend.
✅
Check which state you are building in. NSW and WA have different requirements from other states under NCC 2022. Compliance costs and obligations vary by jurisdiction.
✅
Watch the Housing Australia Future Fund. The government's $10 billion commitment to new social and affordable housing should start delivering dwellings from 2025–26. This could be the first sign of a change in the social housing trend.
✅
Tenancy laws have only moved in one direction. No state has reversed any tenancy reform. If you manage or invest in rental property in VIC, NSW or QLD, compliance obligations are likely to continue increasing.
APN EL 2 · Foundational · A-260416-C21300S1.2
Findings are presented on the basis of data and evidence alone.