Construction across Australia and New Zealand is entering a reset phase - steadier demand, tighter margins, and a pipeline that’s finally beginning to move again after a few volatile years. This Construction Outlook Report provides industry stakeholders with market intelligence to navigate the year ahead.
New Zealand
New Zealand’s construction sector enters 2026 under strain yet beginning to stabilise. The aftershocks of cost escalation, funding constraints and workforce shortages have forced a hard reset across the industry. What’s emerging is a more deliberate market - disciplined and intent on rebuilding confidence. Recovery is beginning to take shape, even if momentum is still fragile.
This year’s Sentiment Survey provides key insights into the state of the market. Sentiment remains fragile but focused, with cost expecting stability to return through late 2026 as rate cuts, planning reform and targeted public investment begin to flow through the pipeline. This year’s Construction Outlook provides a clear lens on New Zealand’s building pipeline.
Australia
Australia’s construction industry enters 2026 tempered by challenge yet guided by pragmatism. The volatility of recent years - soaring costs, labour shortages and a wave of insolvencies - has reshaped the sector’s foundations. What emerges now is not a market in crisis, but one in recalibration: leaner, more deliberate, and increasingly defined by capacity and discipline over scale and speed.
This year’s Sentiment Survey, as well as diverse discussions with developers, architects, builders and industry specialists, provides key insights into the state of the market. Across the industry, collaboration remains essential - and risk is a central factor in every decision. Lessons from the past cycle are reshaping how projects are delivered; improvement will come through smarter collaboration and discipline in execution.
"The industry has gained momentum over the past 12 months following the post-Covid slowdown, with growing optimism across many sectors. There is particular excitement around the Brisbane 2032 Olympics, which is already shaping future opportunities.
While Melbourne continues to face headwinds, activity strengthens the further north you look. Housing remains one of the nation’s biggest challenges - and greatest opportunities - with an urgent need for more homes to be delivered more efficiently. The design community has a critical role to play in shaping this response.
Looking ahead to 2026, we hope to see renewed momentum in the commercial sector, where high vacancy rates are currently testing project viability. Given the length of development cycles, we believe counter-cyclical investment may present strong opportunities in commercial markets development over the coming years."
Daryl Maguire, Warren and Mahoney
Download the full report here.