Housing Approvals Slide Again — Why the Accord Shortfall Is a Turning Point for Development and Bridging Finance

New dwelling approvals have slipped again, leaving Australia's build rate stuck near 204,000 homes a year — well below the 240,000 needed annually to meet the National Housing Accord target (Australian Broker, 1 July 2026).

The shortfall is now a structural feature of the market, not a one-off. Higher construction costs, tighter bank funding for developers and a cautious approvals pipeline are all combining to keep new supply below what population growth demands.

Why supply matters to borrowers, not just builders

A persistent under-build has knock-on effects that reach ordinary buyers and investors:

• Established property holds its value even as headline prices cool, because there simply isn't enough new stock to meet demand.
• Small and mid-sized developers — the builders most likely to add infill and medium-density housing — are precisely the ones big banks have pulled back from funding.
• Timing gaps between buying, building and selling become harder to bridge when finance is slow or inflexible.

Where non-bank finance fits

MPFG Capital's private funding and bridging products are built for exactly these gaps. Where a major bank may take too long or decline a project outright, a non-bank lender can assess the security, the exit strategy and the borrower's experience directly.

Common scenarios in the current market:

• Bridging finance for buyers who have found a new property but haven't yet sold the old one — increasingly common in a slower-selling market.
• Development and construction finance for small builders adding a few dwellings, who fall below the radar of major-bank commercial teams.
• Short-term, interest-only facilities with a clear exit — refinance or sale — that keep a project moving while conditions settle.

The broader message: Australia's housing supply problem won't be solved quickly, and that keeps well-located established property and viable small developments in demand. For borrowers and developers who need to move faster than a bank timeline allows, flexible non-bank finance is often the difference between securing an opportunity and missing it.

This article is general information only and does not constitute financial or credit advice. Loan approval is subject to individual assessment, security and exit strategy. Speak to a licensed MPFG specialist about your circumstances.