Australia is heading towards a significant housing supply gap, with projections showing the country could fall approximately 375,000 homes short of its national target to build 1.2 million new dwellings by mid-2029.
The figures, released by the National Housing Supply and Affordability Council, paint a concerning picture of the challenges facing the construction industry. Key issues identified include rising construction costs, a critical shortage of skilled labour and significant delays in planning and development approvals across states and territories.
At the current pace of building, Australia is unlikely to meet its federal housing targets, despite significant government funding and incentive schemes. The pressure is particularly intense in fast-growing urban and regional areas, where infrastructure and planning systems are struggling to keep pace with population growth.
Industry bodies have called for urgent reform to streamline planning processes, boost trade training programs and increase the availability of development ready land. Without coordinated action across all levels of government, the housing shortfall risks exacerbating affordability pressures and leaving thousands of Australians locked out of the property market.
Addressing the looming gap will require bold, multi-sector collaboration to not only ramp up building activity but also ensure the delivery of diverse, well located and affordable housing options over the next four years.