Almost 40,000 homes across Australia waiting to be built as interest rates and building costs hit developers

KPMG analysis reveals 15,593 dwellings in NSW and 7,897 in Victoria are yet to break ground despite planning approval amid higher cost of materials and finance

Developers have yet to begin work on almost 40,000 new homes across Australia – including 11,170 in Sydney – despite being granted building approvals, with stubbornly high interest rates and construction costs being blamed.

According to KPMG analysis released on Tuesday, 15,593 dwellings with planning approval were yet to break ground across New South Wales by December 2023. It was only a slight improvement on the state’s figures a year earlier, when there were 15,818 approved dwellings across NSW where work was yet to commence.