Housing Costs Rise Again

What It Means for Strata and Australia’s Housing Future

New data released this week by Master Builders Australia reveals what many in the housing and strata sectors already know. The cost of living and the cost of housing are moving in the wrong direction.

Annual inflation reached 3.5% in September 2025, the highest in more than a year, with rents and new home costs again accelerating. Property rates and charges have jumped 6.3% over the past year, the fastest increase in a decade.

Behind those numbers lies a deeper story of persistent housing undersupply and growing affordability pressures across every part of the market, from renters to first home buyers, and right through to existing owners in strata communities.

When we fail to build enough homes, the cost of owning, maintaining and living in them inevitably rises. For the strata sector, this pressure is being felt through higher building maintenance costs, insurance premiums, rates, levies and service charges. These flow directly to the millions of Australians who live and invest in strata.

With a 60,000-home building deficit already confirmed for 2024–25, the first full year of the National Housing Accord, Australia’s housing shortfall is now contributing to inflation rather than easing it. As Master Builders CEO Denita Wawn noted, “Housing-related inflation must be brought under control through policies that lift supply, not stifle it.”

At Strata Community Association Australasia (SCA Australasia), we echo that call.

Boosting supply is not only about building new houses. It is also about supporting the sustainable growth and resilience of the strata communities we already have. Strata plays a critical role in delivering higher-density, affordable and well-managed housing in our cities and regional centres.

“Strata is where Australia lives,” said Joshua Baldwin, President of SCA Australasia. “If we are serious about tackling housing affordability, we must invest in the communities that already exist, the apartment buildings, townhouses and shared spaces that make up our urban future. Supporting professional strata management, sustainable maintenance, and better building outcomes is key to easing the pressure on households and ensuring people have safe, affordable homes.”

To restore balance and affordability, we must:

• Tackle productivity barriers in building, planning and regulatory systems

• Invest in skills and trades to ease labour shortages affecting repairs, maintenance and construction

• Support existing strata communities to remain safe, resilient and financially viable through strong governance and professional management

• Encourage reforms that remove unnecessary red tape, moderate building costs and improve certainty for owners and developers

Strata living is already the reality for more than five million Australians, and it is central to solving the nation’s housing challenge. As inflation and supply pressures mount, SCA will continue to advocate for policies that recognise the vital role of strata in housing affordability, community resilience and long-term sustainability.