Latest news with #NationalHousingSupplyandAffordabilityCouncil
The Advertiser
23-05-2025
- Business
- The Advertiser
Australia's plan to build more homes is in deep trouble. We need bold action
Australia's plan to build 1.2 million new homes by 2029 is in trouble. A new report by the National Housing Supply and Affordability Council (NHSAC) shows we are likely to miss this ambitious target by a huge margin. At the current pace, the council forecasts we will fall about 262,000 homes short of the goal. In other words, for every five homes we need, we're only on track to build about four. No state or territory is building enough to meet its share. This is more than just a number; it means the housing affordability crisis will continue unless we act fast. The report lays out five areas of priority for reform. But implementing its recommendations will require bolder action than we're currently seeing. NHSAC's State of the Housing System 2025 report shows very challenging conditions for future home buyers and renters. By the end of 2024, it took half of median household income to service a new mortgage. Think about that: half of your income gets spent on maintaining a roof over your head. That's well above one common measure of "housing stress" for lower-income households: spending more than 30 per cent of gross income on housing. Anyone planning to purchase their first home faces an average savings period that extends beyond ten years just for their deposit. For renters, the report found it now takes 33 per cent of median household income to cover the cost of a new lease. It doesn't help that rental vacancy rates are near record lows, around 1.8 per cent nationwide. This means renters are competing fiercely for very few available homes. This drives rents even higher. Australians can see the daily reality this report describes. And it can have disproportionate negative impacts on vulnerable groups in society. For example, the rate of homelessness among First Nations people has been about 8.8 times the rate for non-Indigenous Australians. Supply remains a key factor underpinning Australia's housing crisis. We simply aren't building enough homes. Australia completed approximately 177,000 new dwellings in 2024 but that fell short of demand for about 223,000 new homes. And the report predicts we will remain behind our targets for coming years. Under current policy settings, a forecast total of 938,000 new homes will be built between mid-2024 and mid-2029, well short of the Housing Accord's 1.2 million home target. The report identifies five essential action areas needed to restore Australia's housing system to proper functioning. 1. Lift social and affordable housing to 6 per cent of all homes In 2021, only about 4 per cent of dwellings were for social or affordable housing. Governments and not-for-profits must add many more low-rent homes so people on modest incomes aren't trapped on long waitlists. 2. Improve productivity and build faster with modern methods of construction Prefabricated panels, modular kits and even 3D printed structures can halve building time and use fewer tradies. Federal and state governments could fund factories, training and pilot projects to get these methods into the mainstream. The report also calls on the government to address labour and skills shortages. 3. Fix planning systems and unlock land Quicker approvals, firm deadlines and updated zoning would let builders put taller or denser housing near transport, jobs and schools. Governments also need to bundle and service big sites so work can start without years of red tape. 4. Support for renters The report calls on governments to support better outcomes for renters, and to fully implement National Cabinet's "Better Deal for Renters" agreement. This includes through fair notice requirements, no-fault eviction limits and longer leases. It also calls for more support for institutional investment. Tax settings that attract super funds and insurers into large build-to-rent projects would add professionally managed apartments and steady rents. 5. Swap stamp duty for land tax Paying a small yearly land charge instead of a huge upfront stamp duty lets people move or downsize with less of a financial hit, freeing under-used homes and smoothing the market. The council's proposed solutions seem excellent when studied theoretically, but their practical application will prove challenging. Australia needs significant time and effort to address multiple systemic obstacles. One big challenge is the construction workforce. The current workforce lacks enough skilled tradespeople to build homes at the necessary speed. This can result in major delays - even when funding exists. Another barrier is the planning system itself. Changing planning and zoning regulations faces significant political challenges. Higher-density developments face community resistance because of the "not in my backyard" (NIMBY) problem while councils tend to move slowly in updating their regulations. However, the report notes signs of progress in some states. The NSW government has accelerated approval processes and also emphasises "transit-oriented development" - putting new homes near planned and existing transport infrastructure. Similarly, moving to land tax is easier said than done: State governments generate revenue from stamp duty and a shift to an alternative system would require many years to implement. The absence of federal backing and state incentive payments risks delaying this reform. NHSAC's report doesn't just diagnose the problem, it offers a roadmap to a healthier housing system. But those recommendations require bold action. Prime Minister Anthony Albanese's government has a crucial opportunity to turn words into deeds. Australia's housing woes didn't appear overnight, they are the result of decades of under-supply and policy missteps. Turning things around won't be instant - but it is achievable with sustained effort. Australia's plan to build 1.2 million new homes by 2029 is in trouble. A new report by the National Housing Supply and Affordability Council (NHSAC) shows we are likely to miss this ambitious target by a huge margin. At the current pace, the council forecasts we will fall about 262,000 homes short of the goal. In other words, for every five homes we need, we're only on track to build about four. No state or territory is building enough to meet its share. This is more than just a number; it means the housing affordability crisis will continue unless we act fast. The report lays out five areas of priority for reform. But implementing its recommendations will require bolder action than we're currently seeing. NHSAC's State of the Housing System 2025 report shows very challenging conditions for future home buyers and renters. By the end of 2024, it took half of median household income to service a new mortgage. Think about that: half of your income gets spent on maintaining a roof over your head. That's well above one common measure of "housing stress" for lower-income households: spending more than 30 per cent of gross income on housing. Anyone planning to purchase their first home faces an average savings period that extends beyond ten years just for their deposit. For renters, the report found it now takes 33 per cent of median household income to cover the cost of a new lease. It doesn't help that rental vacancy rates are near record lows, around 1.8 per cent nationwide. This means renters are competing fiercely for very few available homes. This drives rents even higher. Australians can see the daily reality this report describes. And it can have disproportionate negative impacts on vulnerable groups in society. For example, the rate of homelessness among First Nations people has been about 8.8 times the rate for non-Indigenous Australians. Supply remains a key factor underpinning Australia's housing crisis. We simply aren't building enough homes. Australia completed approximately 177,000 new dwellings in 2024 but that fell short of demand for about 223,000 new homes. And the report predicts we will remain behind our targets for coming years. Under current policy settings, a forecast total of 938,000 new homes will be built between mid-2024 and mid-2029, well short of the Housing Accord's 1.2 million home target. The report identifies five essential action areas needed to restore Australia's housing system to proper functioning. 1. Lift social and affordable housing to 6 per cent of all homes In 2021, only about 4 per cent of dwellings were for social or affordable housing. Governments and not-for-profits must add many more low-rent homes so people on modest incomes aren't trapped on long waitlists. 2. Improve productivity and build faster with modern methods of construction Prefabricated panels, modular kits and even 3D printed structures can halve building time and use fewer tradies. Federal and state governments could fund factories, training and pilot projects to get these methods into the mainstream. The report also calls on the government to address labour and skills shortages. 3. Fix planning systems and unlock land Quicker approvals, firm deadlines and updated zoning would let builders put taller or denser housing near transport, jobs and schools. Governments also need to bundle and service big sites so work can start without years of red tape. 4. Support for renters The report calls on governments to support better outcomes for renters, and to fully implement National Cabinet's "Better Deal for Renters" agreement. This includes through fair notice requirements, no-fault eviction limits and longer leases. It also calls for more support for institutional investment. Tax settings that attract super funds and insurers into large build-to-rent projects would add professionally managed apartments and steady rents. 5. Swap stamp duty for land tax Paying a small yearly land charge instead of a huge upfront stamp duty lets people move or downsize with less of a financial hit, freeing under-used homes and smoothing the market. The council's proposed solutions seem excellent when studied theoretically, but their practical application will prove challenging. Australia needs significant time and effort to address multiple systemic obstacles. One big challenge is the construction workforce. The current workforce lacks enough skilled tradespeople to build homes at the necessary speed. This can result in major delays - even when funding exists. Another barrier is the planning system itself. Changing planning and zoning regulations faces significant political challenges. Higher-density developments face community resistance because of the "not in my backyard" (NIMBY) problem while councils tend to move slowly in updating their regulations. However, the report notes signs of progress in some states. The NSW government has accelerated approval processes and also emphasises "transit-oriented development" - putting new homes near planned and existing transport infrastructure. Similarly, moving to land tax is easier said than done: State governments generate revenue from stamp duty and a shift to an alternative system would require many years to implement. The absence of federal backing and state incentive payments risks delaying this reform. NHSAC's report doesn't just diagnose the problem, it offers a roadmap to a healthier housing system. But those recommendations require bold action. Prime Minister Anthony Albanese's government has a crucial opportunity to turn words into deeds. Australia's housing woes didn't appear overnight, they are the result of decades of under-supply and policy missteps. Turning things around won't be instant - but it is achievable with sustained effort. Australia's plan to build 1.2 million new homes by 2029 is in trouble. A new report by the National Housing Supply and Affordability Council (NHSAC) shows we are likely to miss this ambitious target by a huge margin. At the current pace, the council forecasts we will fall about 262,000 homes short of the goal. In other words, for every five homes we need, we're only on track to build about four. No state or territory is building enough to meet its share. This is more than just a number; it means the housing affordability crisis will continue unless we act fast. The report lays out five areas of priority for reform. But implementing its recommendations will require bolder action than we're currently seeing. NHSAC's State of the Housing System 2025 report shows very challenging conditions for future home buyers and renters. By the end of 2024, it took half of median household income to service a new mortgage. Think about that: half of your income gets spent on maintaining a roof over your head. That's well above one common measure of "housing stress" for lower-income households: spending more than 30 per cent of gross income on housing. Anyone planning to purchase their first home faces an average savings period that extends beyond ten years just for their deposit. For renters, the report found it now takes 33 per cent of median household income to cover the cost of a new lease. It doesn't help that rental vacancy rates are near record lows, around 1.8 per cent nationwide. This means renters are competing fiercely for very few available homes. This drives rents even higher. Australians can see the daily reality this report describes. And it can have disproportionate negative impacts on vulnerable groups in society. For example, the rate of homelessness among First Nations people has been about 8.8 times the rate for non-Indigenous Australians. Supply remains a key factor underpinning Australia's housing crisis. We simply aren't building enough homes. Australia completed approximately 177,000 new dwellings in 2024 but that fell short of demand for about 223,000 new homes. And the report predicts we will remain behind our targets for coming years. Under current policy settings, a forecast total of 938,000 new homes will be built between mid-2024 and mid-2029, well short of the Housing Accord's 1.2 million home target. The report identifies five essential action areas needed to restore Australia's housing system to proper functioning. 1. Lift social and affordable housing to 6 per cent of all homes In 2021, only about 4 per cent of dwellings were for social or affordable housing. Governments and not-for-profits must add many more low-rent homes so people on modest incomes aren't trapped on long waitlists. 2. Improve productivity and build faster with modern methods of construction Prefabricated panels, modular kits and even 3D printed structures can halve building time and use fewer tradies. Federal and state governments could fund factories, training and pilot projects to get these methods into the mainstream. The report also calls on the government to address labour and skills shortages. 3. Fix planning systems and unlock land Quicker approvals, firm deadlines and updated zoning would let builders put taller or denser housing near transport, jobs and schools. Governments also need to bundle and service big sites so work can start without years of red tape. 4. Support for renters The report calls on governments to support better outcomes for renters, and to fully implement National Cabinet's "Better Deal for Renters" agreement. This includes through fair notice requirements, no-fault eviction limits and longer leases. It also calls for more support for institutional investment. Tax settings that attract super funds and insurers into large build-to-rent projects would add professionally managed apartments and steady rents. 5. Swap stamp duty for land tax Paying a small yearly land charge instead of a huge upfront stamp duty lets people move or downsize with less of a financial hit, freeing under-used homes and smoothing the market. The council's proposed solutions seem excellent when studied theoretically, but their practical application will prove challenging. Australia needs significant time and effort to address multiple systemic obstacles. One big challenge is the construction workforce. The current workforce lacks enough skilled tradespeople to build homes at the necessary speed. This can result in major delays - even when funding exists. Another barrier is the planning system itself. Changing planning and zoning regulations faces significant political challenges. Higher-density developments face community resistance because of the "not in my backyard" (NIMBY) problem while councils tend to move slowly in updating their regulations. However, the report notes signs of progress in some states. The NSW government has accelerated approval processes and also emphasises "transit-oriented development" - putting new homes near planned and existing transport infrastructure. Similarly, moving to land tax is easier said than done: State governments generate revenue from stamp duty and a shift to an alternative system would require many years to implement. The absence of federal backing and state incentive payments risks delaying this reform. NHSAC's report doesn't just diagnose the problem, it offers a roadmap to a healthier housing system. But those recommendations require bold action. Prime Minister Anthony Albanese's government has a crucial opportunity to turn words into deeds. Australia's housing woes didn't appear overnight, they are the result of decades of under-supply and policy missteps. Turning things around won't be instant - but it is achievable with sustained effort. Australia's plan to build 1.2 million new homes by 2029 is in trouble. A new report by the National Housing Supply and Affordability Council (NHSAC) shows we are likely to miss this ambitious target by a huge margin. At the current pace, the council forecasts we will fall about 262,000 homes short of the goal. In other words, for every five homes we need, we're only on track to build about four. No state or territory is building enough to meet its share. This is more than just a number; it means the housing affordability crisis will continue unless we act fast. The report lays out five areas of priority for reform. But implementing its recommendations will require bolder action than we're currently seeing. NHSAC's State of the Housing System 2025 report shows very challenging conditions for future home buyers and renters. By the end of 2024, it took half of median household income to service a new mortgage. Think about that: half of your income gets spent on maintaining a roof over your head. That's well above one common measure of "housing stress" for lower-income households: spending more than 30 per cent of gross income on housing. Anyone planning to purchase their first home faces an average savings period that extends beyond ten years just for their deposit. For renters, the report found it now takes 33 per cent of median household income to cover the cost of a new lease. It doesn't help that rental vacancy rates are near record lows, around 1.8 per cent nationwide. This means renters are competing fiercely for very few available homes. This drives rents even higher. Australians can see the daily reality this report describes. And it can have disproportionate negative impacts on vulnerable groups in society. For example, the rate of homelessness among First Nations people has been about 8.8 times the rate for non-Indigenous Australians. Supply remains a key factor underpinning Australia's housing crisis. We simply aren't building enough homes. Australia completed approximately 177,000 new dwellings in 2024 but that fell short of demand for about 223,000 new homes. And the report predicts we will remain behind our targets for coming years. Under current policy settings, a forecast total of 938,000 new homes will be built between mid-2024 and mid-2029, well short of the Housing Accord's 1.2 million home target. The report identifies five essential action areas needed to restore Australia's housing system to proper functioning. 1. Lift social and affordable housing to 6 per cent of all homes In 2021, only about 4 per cent of dwellings were for social or affordable housing. Governments and not-for-profits must add many more low-rent homes so people on modest incomes aren't trapped on long waitlists. 2. Improve productivity and build faster with modern methods of construction Prefabricated panels, modular kits and even 3D printed structures can halve building time and use fewer tradies. Federal and state governments could fund factories, training and pilot projects to get these methods into the mainstream. The report also calls on the government to address labour and skills shortages. 3. Fix planning systems and unlock land Quicker approvals, firm deadlines and updated zoning would let builders put taller or denser housing near transport, jobs and schools. Governments also need to bundle and service big sites so work can start without years of red tape. 4. Support for renters The report calls on governments to support better outcomes for renters, and to fully implement National Cabinet's "Better Deal for Renters" agreement. This includes through fair notice requirements, no-fault eviction limits and longer leases. It also calls for more support for institutional investment. Tax settings that attract super funds and insurers into large build-to-rent projects would add professionally managed apartments and steady rents. 5. Swap stamp duty for land tax Paying a small yearly land charge instead of a huge upfront stamp duty lets people move or downsize with less of a financial hit, freeing under-used homes and smoothing the market. The council's proposed solutions seem excellent when studied theoretically, but their practical application will prove challenging. Australia needs significant time and effort to address multiple systemic obstacles. One big challenge is the construction workforce. The current workforce lacks enough skilled tradespeople to build homes at the necessary speed. This can result in major delays - even when funding exists. Another barrier is the planning system itself. Changing planning and zoning regulations faces significant political challenges. Higher-density developments face community resistance because of the "not in my backyard" (NIMBY) problem while councils tend to move slowly in updating their regulations. However, the report notes signs of progress in some states. The NSW government has accelerated approval processes and also emphasises "transit-oriented development" - putting new homes near planned and existing transport infrastructure. Similarly, moving to land tax is easier said than done: State governments generate revenue from stamp duty and a shift to an alternative system would require many years to implement. The absence of federal backing and state incentive payments risks delaying this reform. NHSAC's report doesn't just diagnose the problem, it offers a roadmap to a healthier housing system. But those recommendations require bold action. Prime Minister Anthony Albanese's government has a crucial opportunity to turn words into deeds. Australia's housing woes didn't appear overnight, they are the result of decades of under-supply and policy missteps. Turning things around won't be instant - but it is achievable with sustained effort.
Sky News AU
21-05-2025
- Business
- Sky News AU
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.
Perth Now
21-05-2025
- Business
- Perth Now
‘10.6 years': Dire reality for Aussies revealed
The Australian dream of homeownership is looking more hopeless than ever. A median-income household now needs to save for 10.6 years just to afford a deposit and start a whole new challenge of servicing a new mortgage, the National Housing Supply and Affordability Council's annual State of the Housing System 2025 report shows. It notes that mortgage repayments continue to increase faster than incomes, and affordability continues to deteriorate though at a slower pace compared with 2023. About 50 per cent of median household income was needed to meet repayments for new mortgages in 2024, according to the report. It does not look good for renters either, as 33 per cent of median wages are needed to meet rental costs in new leases. Housing affordability continues to deteriorate, threatening aspiring homeowners' entry into the market. NewsWire / Gaye Gerard Credit: NewsWire Rental stress has affected more than 50 per cent of lower-income renter households in 2023. Sixty per cent of these households also experienced stress the year before, showing how persistent the issue is. Only 14 per cent of new homes sold in 2023-2024 were affordable for the median-income household, the lowest on record. NSW residents have drawn the short straw, as new mortgages and home deposits remain the least affordable in Australia, whereas the Northern Territory has the most affordable mortgages and home deposits. Rents in regional Queensland were the least affordable, but rents in Canberra were the most affordable. New housing supply is the lowest in a decade, and the 1.2 million target for new houses to be completed during the Housing Accord period will not be met – even under optimistic economic estimates, the report says. No state or territory will meet their target, and supply is insufficient to meet underlying demand. Anthony Albanese's Housing Accord goals will not be met, even under the most optimistic circumstances. Jason Edwards / NewsWire Credit: News Corp Australia The report has called for systemic reform, government support measures and industry innovation to address the issues, but the NSW government says it is heading in the right direction. 'The Minns Labor government inherited a system that was working against achieving the Housing Accord targets. It was also never assumed that, given macroeconomic conditions and the costs of construction, it would be a straight line between now and mid-2029,' Minister for Planning and Public Spaces Paul Scully said. The NSW government says it is on the right track when it comes to building new homes. NewsWire / Flavio Brancaleone Credit: News Corp Australia 'We are turning around the system. Planning approvals are 15 per cent faster today than they were in March 2023, the number of applications lodged is up 28 per cent on the same time last year, and NSW has the most homes under construction in the country. 'There are thousands more homes and DAs being finalised that are embracing our planning reforms such as the Housing Delivery Authority and the low and mid-rise policy. We're building a pipeline that will actually deliver homes. 'The State of the Housing System report shows us that we have our work cut out for us, but as a government we've got our priorities right.' Weak supply is the key cause of deteriorating affordability. NewsWire / Max Mason-Hubers Credit: News Corp Australia Weak supply has been attributed to a lack of commercial feasibility – it costs more for developers to build than what they would earn selling it. Elevated costs, labour shortages, high financing are all constraining supply but should be easing, the report says. Property Council chief executive Mike Zorbas said the report showed the need to increase productivity in the construction sector, simplify planning systems and encourage investment. 'The alarm bell continues to sound on national housing supply,' Mr Zorbas said. 'The sad fact is that many Australians feel that homeownership is out of reach. 'We have seen the federal and state governments co-ordinate their efforts on boosting supply, but more must be done. Key stakeholders said construction sector productivity must improve. Jason Edwards / NewsWire Credit: News Corp Australia 'Our skills and planning systems are not yet match fit for this century. 'More than 30 per cent of the cost of a new home is government taxes and charges. 'East coast states have daft foreign investment taxes that are barbed wire to overseas institutions that want to send their money to help Australian companies build the assets our cities need. 'The least cost answer for indebted states is to modernise our planning systems and put measures in place to boost the proportion of skilled workers coming into the country. 'We need to bring forward federal environmental approvals and force power and water providers to stop delaying the delivery of new homes, industrial and commercial assets that our communities need as they grow.'
West Australian
21-05-2025
- Business
- West Australian
‘10.6 years': Dire reality for Aussies revealed in State of Housing System report
The Australian dream of homeownership is looking more hopeless than ever. A median-income household now needs to save for 10.6 years just to afford a deposit and start a whole new challenge of servicing a new mortgage, the National Housing Supply and Affordability Council's annual State of the Housing System 2025 report shows. It notes that mortgage repayments continue to increase faster than incomes, and affordability continues to deteriorate though at a slower pace compared with 2023. About 50 per cent of median household income was needed to meet repayments for new mortgages in 2024, according to the report. It does not look good for renters either, as 33 per cent of median wages are needed to meet rental costs in new leases. Rental stress has affected more than 50 per cent of lower-income renter households in 2023. Sixty per cent of these households also experienced stress the year before, showing how persistent the issue is. Only 14 per cent of new homes sold in 2023-2024 were affordable for the median-income household, the lowest on record. NSW residents have drawn the short straw, as new mortgages and home deposits remain the least affordable in Australia, whereas the Northern Territory has the most affordable mortgages and home deposits. Rents in regional Queensland were the least affordable, but rents in Canberra were the most affordable. New housing supply is the lowest in a decade, and the 1.2 million target for new houses to be completed during the Housing Accord period will not be met – even under optimistic economic estimates, the report says. No state or territory will meet their target, and supply is insufficient to meet underlying demand. The report has called for systemic reform, government support measures and industry innovation to address the issues, but the NSW government says it is heading in the right direction. 'The Minns Labor government inherited a system that was working against achieving the Housing Accord targets. It was also never assumed that, given macroeconomic conditions and the costs of construction, it would be a straight line between now and mid-2029,' Minister for Planning and Public Spaces Paul Scully said. 'We are turning around the system. Planning approvals are 15 per cent faster today than they were in March 2023, the number of applications lodged is up 28 per cent on the same time last year, and NSW has the most homes under construction in the country. 'There are thousands more homes and DAs being finalised that are embracing our planning reforms such as the Housing Delivery Authority and the low and mid-rise policy. We're building a pipeline that will actually deliver homes. 'The State of the Housing System report shows us that we have our work cut out for us, but as a government we've got our priorities right.' Weak supply has been attributed to a lack of commercial feasibility – it costs more for developers to build than what they would earn selling it. Elevated costs, labour shortages, high financing are all constraining supply but should be easing, the report says. Property Council chief executive Mike Zorbas said the report showed the need to increase productivity in the construction sector, simplify planning systems and encourage investment. 'The alarm bell continues to sound on national housing supply,' Mr Zorbas said. 'The sad fact is that many Australians feel that homeownership is out of reach. 'We have seen the federal and state governments co-ordinate their efforts on boosting supply, but more must be done. 'Our skills and planning systems are not yet match fit for this century. 'More than 30 per cent of the cost of a new home is government taxes and charges. 'East coast states have daft foreign investment taxes that are barbed wire to overseas institutions that want to send their money to help Australian companies build the assets our cities need. 'The least cost answer for indebted states is to modernise our planning systems and put measures in place to boost the proportion of skilled workers coming into the country. 'We need to bring forward federal environmental approvals and force power and water providers to stop delaying the delivery of new homes, industrial and commercial assets that our communities need as they grow.'
AU Financial Review
20-05-2025
- Business
- AU Financial Review
The 262,000-home shortage Australia needs to fix
Lower interest rates and stable costs are improving affordability and lifting supply but Australia is on track to fall 262,000 homes short of its five-year target, the National Housing Supply and Affordability Council says in its State of the Housing System 2025 report. The 938,000 homes the country is forecast to build over the period to June 2029 is up from a forecast 903,000 new homes the federal government's advisory council made two years ago and reflects cyclical improvements in the economy, council chair Susan Lloyd-Hurwitz said. But the revised forecast total still falls short by 262,000 of the 1.2 million new homes the federal government has pledged to deliver the next five years.
