Australia’s target of 1.2 million new homes by 2029 more than a year behind schedule
NSW is more than two years behind schedule in delivering its share of the 1.2 million homes the federal government hopes to build across the country by the end of the decade, continuing price pressures in the country’s most expensive property market.
An initial review of how states and territories are tracking individual housing targets under the federal housing deal suggests this target may not be fully achieved until the mid-2030s.
The Albanian government has set a target of 1.2 million new homes between mid-2024 and mid-2029. Property prices have increased since 2020, with the average home value in Sydney, Brisbane, Perth and Canberra now exceeding $1 million.
The National Housing Supply and Affordability Council said Wednesday that only 18 percent, or about 219,000 homes, have been completed nationwide since the deal began. At the current rate of housing construction, the target will not be reached until mid-2030.
But with a state target of 377,000 homes, NSW has built only 15 per cent so far. If there is no increase in construction activity, it will not reach its target until mid-2031.
Victoria, the ACT and Western Australia are on track to approach the mid-2029 target, each just three months behind.
But the Northern Territory, its smallest target at 11,500 homes, has built just 5 per cent of its target. The council estimates the NT will not reach its target until after 2034.
Other countries lagging behind include Tasmania, which is on track to meet its target by September 2033, Queensland (September 2030) and South Australia (September 2030).
Council leader Susan Lloyd-Hurwitz said progress was being driven by WA, Victoria and the ACT, noting that supply could be affected by the divide between detached houses and apartments being built in each jurisdiction.
“The quarterly report highlights the tangible progress made since the start of the agreement period and the ongoing efforts of the states and territories to increase housing supply,” he said.
The council said there had been a 17 per cent increase in three-month housing starts since the deal came into force, while the time it took to build a new home had increased by 10 per cent.
But the data predates the Central Bank’s decision last week to raise official interest rates, which is expected to slow demand for home construction.
Finance Minister Jim Chalmers told business leaders on Tuesday that the May 12 federal budget will include a package of reforms to help improve the rollout of new homes.
“The productivity suite will be significant and will be all about making it easier and faster to build, more attractive to invest and trying to reduce some of your compliance costs,” he said.
Opposition housing spokesman Andrew Bragg said the federal government needed to do much more to cut red tape that was holding up new homes.
Bragg chairs a Senate committee examining economy-wide efficiency. It is now taking submissions on ways to remove barriers to housing.
He said the National Building Code, which currently consists of 2,000 pages, could be shortened by at least two-thirds.
“Of course, in the age of artificial intelligence, we can cut through the back end of this ridiculous, ugly code that undermines homeownership. We can make it easier and faster to comply with the rules,” he said.
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Shane Wright is senior economic correspondent for The Age and The Sydney Morning Herald.Connect with: X or email.
