Luxury Developments Dominate Brisbane's New Housing, Leaving Affordable Options in the Rearview

Brisbane is experiencing a housing crisis with a huge shortage of affordable units. A survey in May 2026 found over 40 off-the-plan projects in the city targeting the high-end market, with the cheapest units selling for over $745,000. This shift could worsen the city's affordable housing shortage.

Ben Teague, managing director at luxury developer Molti, admitted the high-end market is where most developments are happening. Teague said, 'It's the high-end stuff that's getting off the ground.'

According to Michael Dyer, an economist at Oxford Economics Australia, various factors are pushing developers away from mass-market offerings. 'Fundamentally what a developer is trying to solve is their end margin in delivering a new apartment building,' Dyer said. 'It just seems to be an area where luxury developers are more easily able to get those feasibilities to stack up.'

The rising cost of construction, labor shortages, and government policies have made it difficult for developers to build affordable units. Teague said, 'In the more affordable space, I can't even imagine how difficult it is to get things to work.'

Some cheaper developments have been proposed, but these are exceptions to the rule. For instance, a 'mid-market' tower announced for Kangaroo Point in April and 'co-living' units in Fortitude Valley unveiled in March are not enough to reverse the trend.

Labor oppositions at both levels of government have argued for a more interventionist response. At Brisbane City Council, their representatives said they wouldn't stand in the way of increased supply. The Greens have pushed for dramatically increased government-backed construction of social and affordable housing.

'It's the high-end stuff that's getting off the ground.'

Ben Teague, managing director at Molti, on why luxury developments are dominating Brisbane's new housing.

The housing crisis is affecting Brisbane residents, particularly those looking for affordable options. With more developments targeting the high-end market, it seems unlikely that the city will see a significant increase in affordable housing anytime soon.

Brisbane City Council's policy, which allows larger towers in several suburbs, has been criticized for not doing enough to address the affordable housing shortage. The LNP state government has also been criticized for prioritizing a supply-side response to the crisis, which some argue has worsened the problem.

The LNP state government has argued that developers weren't building enough due to existing regulations being too burdensome. However, critics argue that removing affordable housing mandates has led to an increase in luxury developments and a decrease in affordable options.