Western Australia's housing construction industry has recorded a 14 per cent decline in dwelling completions during the 2025–26 financial year, raising concerns about the State's ability to meet growing demand for accommodation.

According to figures released by the Australian Bureau of Statistics, fewer than 20,000 dwellings were completed during the financial year, compared with more than 32,000 homes annually approximately a decade earlier.

The figures prompted criticism from WA Liberal shadow treasurer Sandra Brewer, who described the decline as a serious setback for housing supply.

Brewer argued that the State's construction industry was failing to deliver sufficient housing despite population growth and continued demand.

Western Australia also recorded longer average construction times than the national average, with homes taking approximately 10.2 months to complete compared with 8.4 months nationally.

Housing Minister John Carey acknowledged that construction was taking too long but attributed part of the delay to the increasing number of medium and high-density residential developments, which generally require longer construction periods than detached houses.

Carey said approximately 29,000 dwellings remained under construction across Western Australia, although many had yet to reach completion.

He also warned that proposed Federal Government restrictions on migration could worsen labour shortages in the construction industry, particularly if they reduced the availability of skilled tradespeople.

The State Government has introduced a $250 million pre-sale guarantee scheme intended to encourage construction of apartment and townhouse developments.

Applications opened in October 2026, with Treasurer Rita Saffioti estimating that the scheme could support the delivery of up to 1,200 additional homes.

The initiative is designed to provide greater certainty for developers and financiers by supporting qualifying off-the-plan residential projects.

Saffioti said the Government had already received considerable interest from builders seeking information about the scheme through Keystart.

The announcement came amid concerns about rising interest rates and their possible effects on housing demand and property values.

Following an increase in the Reserve Bank's official cash rate to 4.6 per cent, Commonwealth Bank warned that Australian property prices could fall by as much as 9 per cent nationally.

Saffioti acknowledged some price adjustments in Western Australia but maintained that continued demand for housing would help support the local market.

Carey also called for greater adoption of alternative construction techniques to reduce the industry's reliance on traditional brick construction.

His comments followed the unveiling of a development containing 38 social housing dwellings, approximately 80 per cent of which had been constructed off-site.

The Government argued that prefabrication and other modern construction methods could help improve building efficiency and increase housing supply.

The latest figures highlighted the continuing difficulties facing Western Australia's residential construction industry, including lengthy building times, skilled labour shortages and the challenge of converting projects under construction into completed homes.