Australia is falling behind schedule on its ambitious goal to build 1.2 million new homes by June 2029. As of the latest report, only 219,000 new homes have been completed in the first five quarters of the agreement, falling short of the required rate of 280,000.
Housing Targets Lag Across the Nation
Currently, no state or territory is on track to meet its individual housing accord targets. New South Wales is projected to finish by June 2031, while the Northern Territory won’t complete its share until after 2034. Victoria, Western Australia, and the Australian Capital Territory are performing better, with completion expected by September 2029.
The ACT has seen the most success, with 117 per cent more dwellings approved in the year to January compared to the previous year, attributed to measures like relaxed zoning and the removal of third-party appeals for public housing. However, Victoria is facing challenges, with building approvals down one per cent over the same period despite efforts to increase density and streamline approvals.
Middle East Conflict Impacts Supply
Progress on the national housing target is now facing additional headwinds. Surging oil prices, linked to the war in the Middle East, are increasing material costs, and concerns exist about potential disruptions to the supply of materials like PVC pipe. Housing Minister Clare O’Neil recently held discussions with industry leaders to explore alternative sourcing options.
Despite these challenges, the National Housing Supply and Affordability Council chair, Susan Lloyd-Hurwitz, noted that the quarterly report highlights “tangible progress” and continued efforts by states and territories to increase housing supply. Building approvals and completions were up 17 per cent in the last quarter compared to the period before the accord began.
Frequently Asked Questions
What is the current status of the national housing target?
The national target of 1.2 million new homes by June 2029 is behind schedule, and is now projected to be completed by June 2030.
Which jurisdictions are performing best in meeting their housing targets?
Victoria, Western Australia, and the ACT are the best performing jurisdictions, but are still only set to complete their share of the target by September 2029.
How is the conflict in the Middle East impacting housing supply?
Surging oil prices, linked to the conflict, are increasing material costs and raising concerns about potential supply disruptions, particularly for materials like PVC pipe.
As Australia navigates these challenges, what role will innovative building materials and alternative construction methods play in addressing the housing shortage?
