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We've been saying for a while that building better homes is good for builders, not just the planet. Now we have data to back it up.
Today, the Sustainable Builders Alliance is releasing our inaugural State of the Market Report, based on a survey of 141 Australian residential builders conducted between January and March 2026. We went looking for patterns. What we found was a consistent, clear signal pointing in one direction.
What the data shows
We identified a group we call high-performance builders: those who build above minimum code on almost every project and make build performance central to how they present their work. They represent ~30% of our survey respondents. When we compared their business outcomes to everyone else, the difference was striking.
On pipeline, high-performance builders are nearly twice as likely to have work locked in more than six months ahead (59.5% vs 37.4%). While more than a third of other builders describe their pipeline as patchy or say they're actively chasing work, only 16.7% of high-performance builders are in that position.
On margins, high-performance builders are twice as likely to report strong or healthy margins (28.6% vs 14.1%). And while about half of both groups describe margins as workable, the gap tells the real story: 32.3% of other builders say the work is tight or barely worth it, compared to just 16.7% of high-performance builders.
On quote conversion, high-performance builders are 2.5x more likely to be very happy with how often their quotes turn into jobs (42.9% vs 17.2%).
The finding that surprised us most
The most striking pattern in the data isn't actually about high-performance builders vs everyone else. It's about a group in the middle.
More than half of all builders surveyed (56%) are already building above code on most of their jobs. They're moving toward better build performance. But fewer than half of them lead with comfort, running costs and energy efficiency in the sales conversation, and that gap is showing up in their numbers. Their pipeline, margins and conversion all sit consistently below high-performance builder levels across every measure.
73% of these transitioning builders say they already build above code. The work is there. The standard is there. What appears to be missing is how a builder ‘positions’ or presents themselves to potential clients.
What clients are telling the market
The report also points to a shift in what clients are asking about. They're moving beyond square metres and finishes and asking about energy bills, thermal comfort and what it'll actually cost to live in the home, not just to build it. High-performance builders appear to be meeting that conversation head-on, and their business outcomes reflect it.
The biggest frustration reported by ‘transitioning’ builders is clients who don't understand what things actually cost. High-performance builders report a different primary frustration: the cost of materials. Not their clients' understanding of value. Does the distinction mean those that position themselves specifically as high-performance builders are attracting better clients?
A note on what the data can and can't say
We want to be clear about something. This survey can't tell us that positioning causes better outcomes. What it can tell us is that the association between high-performance positioning and stronger business results is consistent across every measure we looked at. That's worth paying attention to.
Download the report
The full State of the Market Report is now available to download here. It's free to access and designed to be shared.
We support builders transitioning to high performance building. If you're already a high performance builder or aspiring to be one, become a member and list your details on our Sustainable Building Directory.
