Australia is on track to fall more than 60,000 new homes short of the 240,000 total needed in the first year of an ambitious new housing affordability crisis-busting program. And a leading economist has warned to get the numbers up state governments will need to encourage foreign investors, reconsider property taxes and slash planning timelines.
The Housing Industry Association’s National Outlook released today forecasts just 178,839 new apartments, townhouses, units and houses will be built next year. In 2025 the projections suggest only 195,105 homes will be added to the nation’s housing supply.
It comes after a national cabinet meeting this week pledged to make Australia’s housing shortage a key focus, adding 200,000 homes to a previously declared target of building a million new residences across the nation by the end of 2029.
The new target would require 240,000 new homes to be built each year to reach, with states that go above and beyond to take a share of a $3bn incentive fund revealed by the Prime Minister on Wednesday.
HIA senior economist Tom Devitt said with Australia commencing 231,183 homes in the midst of the HomeBuilder boom in 2021 and 234,234 in the 2016 apartment boom, the revised target would actively improve housing affordability, and while “ambitious”, was “very doable” despite current expectations.
Better planning regimes around releasing land for development would be a key aspect, however he said incentivising investors — including foreign investors was also vital. Revising taxes on development and investment, particularly state-based levies on international buyers, would need to be considered nationwide.
