New inflation figures show the cost of building and renting in Darwin continues to rise, reinforcing concerns that further government policy changes will only make it harder to deliver the homes the Northern Territory desperately needs.

In the year to July 2026, Darwin rents increased by 6.0 per cent, while the cost of purchasing a new dwelling increased by 5.9 per cent. Darwin’s annual inflation rate was 3.7 per cent.

Master Builders Northern Territory CEO Sallyann Innes said the figures should be a clear warning to government that policy decisions which increase costs, reduce investment confidence or make projects less viable will ultimately result in fewer homes being built.

“We are constantly being told that Australia needs to build more homes, but at the same time we are seeing policy changes that make it harder and more expensive to actually build them.

“That contradiction is particularly concerning in the Northern Territory, where our market is smaller, our construction costs are already high and attracting the investment needed to get projects off the ground can be challenging.

“Rents in Darwin have risen six per cent in just 12 months and the cost of a new dwelling has increased by almost six per cent. We should be doing everything possible to bring more housing to market, not introducing additional uncertainty and cost.”

Master Builders NT is concerned about the cumulative impact of proposed Federal Government changes affecting capital gains tax, negative gearing, self-managed super fund investment in housing and trusts used by small businesses.

Ms. Innes said these measures cannot be looked at in isolation from their impact on housing supply and the businesses expected to deliver it.

“Construction in the Territory is dominated by local businesses, many of them family-owned small and medium enterprises. These are the businesses employing Territorians, training apprentices and taking the commercial risk required to deliver our homes and infrastructure.

“When you make investment less attractive, increase the cost of doing business or create uncertainty around the viability of projects, some projects simply will not proceed.

“In the Northern Territory, we cannot afford that.”

Ms Innes said governments needed to recognise that the cost placed on builders and investors ultimately flows through to homeowners and renters.

“You cannot increase the cost and complexity of building on one hand and expect cheaper housing and greater supply on the other.

“If we genuinely want more homes, government policy has to support the people who finance them, develop them and build them.

“The Territory needs a policy environment that encourages investment, supports local construction businesses and gives industry the confidence to build.

“Every policy decision should be tested against one simple question: will this make it easier or harder to build a home?

ENDS