Victoria is approving more homes than NSW despite having 1.5 million fewer people

Victoria approved more dwellings than New South Wales in July despite having around 1.5 million fewer residents. On a per-capita basis, its approval rate is approximately 25 per cent higher.

Victoria is now approving more new homes than New South Wales despite having around 1.5 million fewer residents.

The latest Australian Bureau of Statistics Building Approvals data show Victoria approved 4,958 dwellings in July in trend terms, compared with 4,790 in New South Wales. Nationally, approvals rose 0.8 per cent in trend terms and were 11.7 per cent higher than a year earlier.

The population difference makes the comparison more striking. New South Wales had 8.64 million residents at the end of 2025, compared with 7.12 million in Victoria. Annualising July’s approval rate, Victoria is approving about 8.4 dwellings per 1,000 residents, against only 6.7 in New South Wales.

That means Victoria’s approval rate per person is roughly 25 per cent higher.

Approvals are not the same as completed homes, and a single month should not be over-interpreted. But in Australia’s most expensive housing market, New South Wales’ comparatively weak approval rate remains an important supply-side warning.

Victoria is approving homes faster than NSW
Annualised dwelling approvals per 1,000 residents, based on July 2026 trend approvals
Victoria 8.4
New South Wales 6.7
Victoria's approval rate per resident is approximately 25% higher than NSW's.
Sources: ABS Building Approvals, July 2026; ABS National, State and Territory Population, December 2025. Benchmark Analytics calculations.

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