After years of tight supply and stalled projects, Australia’s home building approvals are finally moving in the right direction. New data from the Australian Bureau of Statistics shows approvals have reached their highest level since early 2022, with higher-density housing recording its strongest month in more than five years.

On the surface, this sounds like welcome news for first-home buyers who have been navigating rising prices, limited stock and intense competition. But for anyone planning to build their first home in Queensland in 2026, approvals alone don’t tell the full story.

The reality is more nuanced. While activity is picking up, the conditions shaping how easy, affordable and practical it is to build remain complex, especially across South East Queensland.

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Building approvals are rising, but the story is more complicated

Over the year to November, more than 195,000 new homes were approved across Australia, a clear improvement on previous years. Much of that growth came from apartments and higher-density developments, which saw a significant lift as affordability pressures pushed buyers and developers toward more compact housing.

Detached house approvals also increased, but only marginally. For first-home buyers hoping to build a standalone home, this distinction matters. The increase in approvals does not automatically translate into more house and land options becoming available in the short term, particularly in established or high-demand suburbs.

At the same time, Australia is still building well below the pace required to meet national housing targets. The supply gap built up over recent years has not disappeared, and this continues to place upward pressure on prices, especially in fast-growing states like Queensland.

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Why rising approvals don’t automatically mean easier builds

For first-home builders, rising approvals do not guarantee smoother or cheaper builds. Skilled labour shortages remain a significant challenge across the construction industry, affecting timelines and costs. Productivity issues and ongoing regulatory hurdles are also slowing how quickly approved projects turn into completed homes.

Inflation has eased compared to its peak, but construction costs remain elevated. Materials, labour and compliance requirements continue to influence build budgets, making early planning and realistic cost assessments more important than ever.

In South East Queensland, population growth is adding another layer of pressure. Strong interstate migration continues to fuel demand for housing across Brisbane, Ipswich, Moreton Bay and the Sunshine Coast. Even as approvals increase, demand is often absorbing new supply as quickly as it comes online.

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What this means for first-home buyers building in South East Queensland

For first-home buyers considering building in Queensland, the takeaway is not that opportunities are disappearing, but that strategy matters more than ever.

Higher-density housing growth reflects a broader shift in buyer behaviour as affordability becomes a defining factor. While many first-home buyers still aspire to a detached home, flexibility around location, lot size and design is increasingly important.

Growth corridors such as Ipswich, parts of Moreton Bay and outer Brisbane suburbs continue to attract attention due to relative affordability, infrastructure investment and ongoing residential development. These areas often offer more viable pathways into the market for buyers who are priced out of inner or established suburbs.

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For a closer look at where first-home builders are finding the best opportunities, see our guide to the best suburbs in South East Queensland for first-home builders in 2026.

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Building also remains an appealing alternative to buying established homes, particularly when resale stock is limited or highly competitive. However, success depends on understanding site costs, contract structures and realistic build timelines, especially in a market where conditions can change quickly.

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The bottom line for first-home builders in 2026

Rising building approvals are a positive signal, but they are only one part of the picture. For first-home buyers in Queensland, affordability pressures, supply constraints and population growth will continue to shape the market into 2026.

Building a first home is still achievable, but it requires informed decisions around location, budget and timing. Buyers who take the time to understand market conditions and plan strategically are better placed to avoid common pitfalls and make confident choices.

As Queensland’s housing market continues to evolve, knowledge remains one of the most valuable tools first-home buyers can have, especially when navigating a complex and competitive environment.

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A smarter way to navigate your first home journey

Whether you are buying or building, entering the Queensland property market as a first-home buyer can feel overwhelming. The key is having clear information, realistic expectations and support early in the process.

At Nesta, we help first-home buyers across Queensland understand their options, compare builders and plan their build with confidence. From suburb selection to builder matching and contract guidance, we’re here to make the process clearer and less stressful.

With the right preparation and advice, building or buying your first home does not have to feel daunting.

Start your journey with confidence. Talk to a Nesta broker for free today.

Want more tips? Check out our blog and start planning your dream build with Nesta today.