Albanese government falling short on 1.2 million housing targets, new independent report reveals
The Albanese government has seriously underdelivered in housing supply after promising to build 1.2 million new homes by 2029.
If the government were to achieve its target, it would need to ensure 240,000 were built each year, but ABS figures show that since the Housing Accord began in July 2024, only about 90,000 new dwellings have been completed.
There were 90,136 houses built from July to December 2024 under the Albanese government, almost the same amount delivered by the Morrison government over the same period in 2021.
The findings come after the government lifted total housing commitments to $33 billion in the latest federal budget, including the $10 billion Housing Australia Future Fund.
The National Housing Supply and Affordability Council has projected the government will fall short of its target by more than 250,000 homes—or roughly 20 per cent.
The State of the Housing System 2025 report forecast the country will build 938,000 new homes by June 2029—up from 903,000 in the previous forecast.
'No state or territory is forecast to meet the share of the target implied by its population,' the NHSAC report said.
Housing Minister Clare O'Neil welcomed the findings which her office said shows the "scale of the ambition and investment" needed to address the housing crisis.
"It takes time to turn the tide on a housing crisis a generation in the making, that's why it's so important the Labor government keeps building on the foundations laid last term," a spokesperson for Ms O'Neil told Sky News.
"Planning reform, supercharging construction worker training, direct investment in building more social and affordable homes—these are all policies that have taken a Labor government to deliver, and we're continuing that dedicated work into a second term."
Housing responsibility is shared between federal and state governments, with most of policy levers on planning and zoning within the jurisdiction of states.
Chair of the NHSAC Council, Susan Lloyd-Hurwitz, warned the country remains in the grip of a chronic housing crisis, with no resolution in sight.
'The Australian housing system remains far from healthy and is continuing to experience immense pressure,' Ms Lloyd-Hurwitz said in a statement.
'The nation is still very much in the grips of a housing crisis that has been decades in the making through our persistent failure to deliver enough homes to meet demand.
'For many Australians right across the country, the ability to access an affordable, fit for purpose and secure home remains a challenge, if not out of reach entirely.'
The government delivered just 177,000 new dwellings in 2024, well short of the estimated underlying demand of 223,000.
Only 2,600 of those homes were new public dwellings, leaving the government a long way to go to achieve its promised 30,000 social and affordable homes by 2029.
The Property Council of Australia has since called on the government to do more to boost housing supply and said the 'alarm bells' continue to ring.
Chief Executive Mike Zorbas argued that, despite some progress, the country's planning and construction systems were still not fit for purpose.
'The alarm bell continues to sound on national housing supply. The sad fact is that many Australians feel that homeownership is out of reach,' he said on Wednesday.
'More than 30 per cent of the cost of a new home is government taxes and charges.'
The average time needed to save for a home deposit has increased to 10.6 years and half of the median household income is needed to pay the average mortgage, according to the report.
The report forecasts slight improvements in affordability over the next few years, but concludes that 'system-wide reform' and 'industry innovation' are needed.
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