ABS figures reveal shortage of over 50,000 new homes
Australia approved 185,844 new homes in the 2024/25 financial year, falling 54,156 short of the annual target set by the National Housing Accord, according to new data from the Australian Bureau of Statistics (ABS).
The shortfall raises concerns about the country’s ability to meet its goal of 1.2 million new homes by 2029, which requires at least 240,000 approvals each year.
Despite the gap, the June ABS figures show a 13.5% increase in approvals compared to the previous year, with 22,152 more homes approved. Apartment approvals also rose sharply to 42,387, up 42.1% from 29,826 in 2023/24.
According to Matthew Kandelaars (pictured right), group executive policy and advocacy at the Property Council, the accord has contributed to the improvement but warned that more action is needed.
“These numbers highlight the mountain we need to climb, but it is good to see a healthy increase in the number of housing approvals,” said Kandelaars. “This goal was never going to be easy, but striving for it will serve all Australians who dream of owning their own home.”
Kandelaars pointed to regulatory hurdles as a key factor limiting progress. “Too many projects are getting stalled in the thickets of regulation,” he said. “We need to unlock more homes by removing planning and environmental red tape to push assessments through the system sooner and with greater certainty.
“All of this is adding layers of delay and confusion, even before considering the investment settings required to take projects from approval to commencement. In particular, state-based taxes amounting to up to four in every 10 dollars of the cost of a new home are turning their noses to our national need to deliver more homes to rent or to buy.
“It is also pleasing to see home approvals in June reach their highest levels since August 2022,” said Kandelaars. “Building on this growth will be vital for reaching our housing targets by 2029.”
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