Australia's housing goals off to a slow start

The Australian government’s goal of building 1.2 million new homes by 2029 is already facing significant setbacks. Recent data from the Australian Bureau of Statistics (ABS) reveals that housing completions are well below the required pace, raising concerns about whether the country can meet its ambitious targets.

Housing supply falling behind expectations

To stay on track, the National Housing Accord, introduced in 2022, requires a steady increase in new home construction. However, during the September 2024 quarter, only 44,884 homes were completed, falling short of the necessary output. With an early shortfall of over 15,000 homes, experts are questioning whether the program can succeed without major adjustments.

Uneven progress across the states

While some states are making steady progress, others are struggling to meet their commitments. Victoria is performing relatively well, achieving almost all of its quarterly target. Western Australia is also close to meeting expectations.

However, New South Wales, the state with the highest housing target, has completed less than 60 per cent of its required homes. The Northern Territory faces even greater hurdles, with delivery sitting at less than 25 per cent of its goal. This disparity highlights the broader challenges in ensuring housing growth is evenly distributed across the country.

Key factors slowing construction

Several obstacles are contributing to the slowdown in housing supply. Industry experts point to a shortage of skilled labour, escalating construction costs, and complex planning regulations as major barriers. The downturn in multi-unit developments is particularly concerning, as this sector plays a critical role in boosting housing density in high-demand areas.

The Housing Industry Association (HIA) has emphasised the need for strong growth in high-density projects to meet demand. Without increased investment and support for these developments, the shortfall in housing supply could become even more pronounced in the coming years.

What this means for buyers and investors

With housing supply struggling to keep up with demand, competition in the property market is expected to remain strong. For buyers and investors, staying informed and making strategic decisions will be essential. Understanding local market trends and working with experienced real estate professionals can help navigate these challenges and identify the right opportunities.

Get the right advice for your property journey

Whether you’re looking to buy, sell, or invest, staying ahead in a changing market requires expert guidance. If you’d like to discuss how these housing trends may affect your property plans, get in touch today. I’m here to provide insights and support to help you achieve your real estate goals.

Source: Australia lags 15k homes behind national housing target – Real Estate Business