Mining-rich Western Australia has the nation's strongest home building activity while Tasmania is languishing in last place.
Western Australia scored 85 out of 100 in the Housing Industry Association's residential building scorecard, as first-home buyer numbers surged.
"Mining investment and strong population growth have seen WA's economy growing quickly, but until recently residential building had been stuck in the slow lane," HIA chief economist Harley Dale said.
"The stronger conditions more recently have taken WA to the number one position for the first time in over five years."
The ACT came second, thanks to healthy demand for new apartments and home renovations, but the HIA expects a moderation in strong building activity.
Victoria took home third prize thanks to strong multi-unit development.
The Northern Territory, in fourth place, continued to have Australia's strongest apartment building activity, the HIA survey said.
NSW came fifth, as renovation activity remained weak but the HIA anticipates an improvement in new home building activity.
South Australia, (sixth place) and Queensland (seventh) both scored less than 50 out of 100 - with detached house building activity weak in both states.
Tasmania came last - and is expected to remain in that spot - with a score of just 30 out of 100, as the pool of construction workers shrinks.
The state has been at the bottom of the table for the past year.
"There is little to suggest that this could change in the short term," the report said.
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