The number of buyers looking to build or purchase a new home has surged, with activity reaching the highest levels seen in four years.
In January, searches on the New Homes section of realestate.com.au rose to their highest point since January 2022, marking a clear shift in buyer sentiment after several challenging years for the sector.
Interest in new housing peaked back in 2020, fuelled by the Federal Government's HomeBuilder grant - a $25,000 grant introduced to stimulate the residential construction industry as the nation recovered from the covid crisis.
That stimulus sparked a wave of development activity which carried through into 2021.
But from 2022, demand to buy new homes fell away sharply. Construction costs were rising at an unprecedented pace, interest rates were increasing rapidly, and cost blowouts became commonplace. At the same time, a steady stream of builder collapses eroded confidence, leaving many buyers hesitant to commit to new builds.
Now, conditions for the sector are improving. While construction costs remain high, the pace of growth has eased, with the pace of cost increases now closer to long-term average levels. This has helped reduce uncertainty around build costs and timelines, improving confidence for both developers and buyers.
Another key driver behind the rebound in new home searches is the expansion of first-home buyer incentives. In recent months, several new schemes have come into effect, including the Australian Government 5% Deposit Scheme which launched in October 2025 and the Help to Buy Scheme which launched in December 2025.
These sit along existing state-based incentives to buy new, such as stamp duty concessions and first home-owners grants, which are often more generous for new homes than established.
Among those looking to buy new, Queensland is attracting the most interest. The state accounted for 31% of all new home searches over January.
This was well above its share of total buy searches across new and established homes, where it accounted for 24% of searches, ranking third behind New South Wales (27%) and Victoria (26%).
New South Wales was the second most in-demand state for those looking to buy new, at 20% of searches, followed by Victoria, at 18%.
When it comes to the kinds of properties buyers of new homes are looking for, overwhelmingly it's house and land packages.
Over the six months ending January 2026, 80% of all searches to buy new were for house and land. New units accounted for 13% of searches, while land-only searches made up the remaining 7%.
In contrast, among those looking to buy an established home, 40% were searching to buy a unit.
This highlights the ongoing preference for larger dwellings, particularly among families and first home buyers seeking space at a more affordable price point.
Many buyers, particularly those seeking larger homes, have been priced out of inner- and middle-ring suburbs, pushing demand towards new housing estate in outer areas.
An added advantage of buying new is the ability to lock in a price for a home that hasn’t yet been completed, offering some protection in a market where prices are still expected to rise.
