Australia has a housing shortage. So why are Bathla and other home builders collapsing?
The collapse of the Bathla Group, a major Australian home builder, has left thousands of apartment projects in limbo and highlighted systemic instability in the construction sector. Despite high demand, the industry faces ongoing insolvency issues that threaten national housing targets.
Why it matters
The construction industry's instability is a major barrier to solving Australia's housing shortage, impacting both economic growth and social welfare.
Topic: Construction and Real Estate Industry
Across Australia, thousands of people are waiting to find out if their homes will be built, after several separate construction company collapses. ( ABC News: John Gunn )
Link copied Share Share article Across Australia, thousands of people are waiting to find out if their homes will be built, after several separate construction company collapses.
By far the biggest of those recent collapses has been the Bathla Group , a Sydney developer that's been one of Australia's largest affordable home builders.
Owing about $3.4 billion to private lenders, Bathla's voluntary administration has thrown the construction of more than 2,000 apartments into limbo, while jeopardising a further pipeline of 14,000 homes.
Figures released last week show 3,472 Australian construction companies went bust in the financial year to June 30 2026: one in four (24.5 per cent) of all company insolvencies nationally.
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