Why This Matters

• The near-parity between damaged and newly built homes highlights the strain on housing supply and construction resources.
• Rising repair costs, climbing faster than inflation, add pressure to insurance premiums and government disaster relief budgets.
• The trend threatens to undermine progress on housing targets if disasters continue to destroy homes as fast as they can be built.

Background

Australia has experienced a sharp increase in the frequency and intensity of climate-related disasters, including floods, bushfires, and cyclones. The housing sector is simultaneously grappling with a supply shortage, rising material costs, and labour constraints. The report 'The homes we build twice' examines the compounding effect of these pressures on the nation's housing stock and rebuilding capacity.

Key Perspectives

Climate scientists: Emphasise that without significant emissions reductions, the frequency of catastrophic events will continue to rise, further straining housing infrastructure. Housing industry groups: Point to the challenge of meeting national housing targets while also diverting resources to disaster recovery and rebuilding. Insurers and policymakers: Note that rising reinsurance costs and claims volumes may make coverage less affordable, potentially leaving more households uninsured or underinsured.

What to Watch

• Future disaster seasons and the number of homes damaged relative to new completions in 2026.
• Government investment in resilience measures, such as updated building codes and land-use planning.
• Trends in home insurance premiums and availability in high-risk areas.