Growth is forecast to rise to 1.9% in 2025–26 and 3.1% in 2026–27, buoyed by easing interest rates, population growth and renewed investment in major commercial projects, especially data centres.
Growth is expected to strengthen from 2026-27 with total building and construction expanding to $351 billion (+3.1%).
Despite the positive national trajectory, the forecasts also highlight continuing risks from planning delays, skills shortages, subcontractor insolvency and productivity constraints.
Produced by the Australian Construction Industry Forum, the ACIF Forecasts offer
a ten-year outlook across residential, non-residential and engineering construction.
Forecasts offer insights into future work volumes, labour demand, cost trends and the pipeline of major projects and are used by policymakers, consultants and contractors alike to plan for demand, capacity and risk.
“As Consult Australia is a member of ACIF, our members can access these forecasts at no additional cost – which is part of our broader commitment to equipping businesses with authoritative, industry-led market intelligence,”
says Linda Gaunt, Consult Australia’s Head of Engagement.
The Forecasts are developed by leading economic forecasters and reviewed by ACIF’s Construction Forecasting Council, comprising economists and experts from across government and industry.
ACIF represents 25 organisations that
in turn represent 250,000 professionals across the built environment.