First Home Buyers: 2026 will be a good year for for home building.

Oliver Hume Property Group's latest market insights indicate 2026 will be a good year for home building.

According to Adam Duster, CEO of Oliver Hume Home Solutions, several essential factors have lined up, delivering optimism that Australians will be building in substantial numbers in 2026.

Key Factors contributing to home building success in 2026:

• Lower Interest Rates

  • Noting the impact of interest rates for first home buyers, “Every 0.25% cut adds roughly $15,000 in borrowing capacity on a $500,000 loan.”

• Buyer Sentiment

  • Ultimately, the three cuts of 0.25% each – bringing Australia’s official cash rate to 3.60% – haven’t had a significant impact on borrowers’ budgets. However, “the cuts have provided much-needed certainty – buyers who were sitting on the side lines are starting to re-engage,” said Mr Duster.

• Demand Outlook Promising

  • According to Mr Duster, the real momentum for first home buyers “is coming from demand-side support like the federal government’s Home Guarantee Scheme and the upcoming Help to Buy program, which are bridging that gap for qualified buyers.”

• Looking Ahead

  • “We expect steady improvement rather than a sudden surge – especially in Melbourne, where population growth is again outpacing housing supply. For Adelaide, Brisbane, and Perth, supply remains tight, so sales should continue much as they have this year: strong and consistent,” he added.

As the spring market uplifts, the inventory of houses for sale is likely to expand in home building, making it an ideal time for potential first home buyers to explore their options.

Mortgage brokerage services are provided by a related body corporate of MyFirstHome Pty Ltd, MyFirstLoan.au Pty Ltd ACN 168 808 946 (MFL) as a credit representative (Australian credit representative number 564038) of Allied Financial Consulting Pty Limited ACN 059 732 419, which holds Australian Credit Licence number 393845. As a credit representative, MFL is authorised to provide credit services where it is not a credit provider under any credit contract, for example, to act as a broker for loans provided by other credit providers. Loans brokered by MFL are structured and managed by Homestar Finance (which holds Australian Credit Licence 390860), which engages a professional trustee and lender to be the 'lender of record' for its loans. Quoted rates are correct as on publication date.