Australian Home Building Target: Is It Achievable or Set to Fail?
Australian Home Building Target: Is It Achievable or Set to Fail?
Challenges Facing the Australian Home Building Target
The Australian home building target of 1.2 million new homes under the National Housing Accord’s five-year plan always seemed like a bold goal. However, current completion rates are falling short, leading to growing concerns about whether this goal is realistically achievable.
Home Completion Rates Falling Behind the Target
Historically, Australia has never reached 240,000 home completions per year. According to the Australian Bureau of Statistics, builders completed only 44,884 homes in the September 2024 quarter—15,116 fewer than the required pace. If this trend continues, developers could fall short by more than 300,000 homes by the end of the five years. This raises serious doubts about whether the Australian home building target can be met.
Impact of Housing Shortages on Rental Crisis and Affordability
As a result, the growing gap in housing supply will add significant pressure to Australia’s rental crisis and housing affordability. With demand far outstripping supply, property prices continue to rise. Many Australians now struggle to find affordable homes, particularly in major cities like Sydney, Melbourne, and Brisbane, as well as high-growth regional areas. Housing shortages in these areas have already reached critical levels. In turn, rising property prices and rents make homeownership even more difficult for many Australians.
Source: https://www.mpamag.com/au/news/general/housing-target-falls-short-by-15000-homes/521672
Rising Construction Costs Impacting Home Building Goals
Another major challenge to meeting the Australian home building target is the rising cost of construction. Builders face increased material and labour costs, supply chain disruptions, and higher interest rates. As a result, developers are finding it harder to build homes profitably. This has led to delays, cost overruns, and cancellations of projects. Fewer homes are being built, further reducing the chances of hitting the target.
Queensland’s Shortfall and Brisbane’s Housing Market Struggles
For example, in Queensland, builders completed only 8,177 homes against a target of 12,287. This leaves a shortfall of 4,110 homes. Moreover, Brisbane’s housing market faces significant pressure. High demand and limited availability continue to push prices up, creating more affordability challenges.
Source: https://www.stockwell.com.au/articles/enjoy-brisbane-city-this-autumn
Will the Australian Home Building Target Be Achievable in 2025?
As we move into 2025, it will become clearer whether the Australian home building target is achievable. If the current trend continues, the country will likely fall even further behind, worsening the housing affordability crisis.
Get in Touch with Us
If you’re concerned about the impact of the housing crisis on your investment strategy or need advice on navigating the current market, don’t hesitate to get in touch with us. At Taylored Property Wealth (https://tayloredpropertywealth.com.au/), we specialise in finding high-performing investment properties, and we’re here to help guide you through the complexities of the property market. Contact us today at info@tayloredpropertywealth.com.au to discuss how we can help you make informed investment decisions during these uncertain times.
