Master Builders ACT chief executive Anna Neelagama says Canberra is facing a second wave of inflation, warning pressure on households and builders is “not over”.

“Inflation pressures are not over. What we are seeing now is inflation 2.0, driven by labour shortages and ongoing housing supply and demand constraints,” Ms Neelagama said.

Annual inflation in the ACT was 3.3 per cent in December 2025, according to the latest Australian Bureau of Statistics data.

While rent growth in Canberra rose by 1.1 per cent over the year to December, Ms Neelagama said the figures masked deeper problems in the housing market.

“The underlying issue remains unchanged: not enough new homes are being built to meet population growth, particularly for renters,” she said.

“This ongoing imbalance continues to push up the cost of building and living, even where headline price growth appears lower than other capital cities.”

The cost of purchasing a new dwelling in Canberra also rose over the year, increasing by one per cent, adding further pressure to affordability.

Ms Neelagama said the data highlighted the need for governments to address the basics of housing supply.

“Builders know better than anyone that housing affordability cannot improve without supply,” she said.

“Planning delays, limited land, workforce shortages and rising regulatory burden continue to restrict the delivery of new homes in the ACT.

“With the interest rate outlook remaining far from certain, the economic message for 2026 is clear: governments must do better,” she said.

Master Builders ACT is calling for faster planning and approvals, improved land availability and affordability, greater investment in skills and workforce capability, and smarter regulation aligned with the rest of the country.