According to the ABS there were 44,884 new dwellings completed from July to September last year.
That's more than 15,000 short of the ambitious target of 60,000 new properties Australia needs to build every quarter, and the breakdown shows not a single state or territory exceeded their quarterly target.
Victoria came the closest, building 15,302 homes over the quarter to fall just 0.1% shy of the 15,316 expected.
At the other end of the scale, there were just 122 new homes built in the Northern Territory, 78.6% short of the quarterly target of 571.
| State/Territory | Quarterly Target | September 2024 Dwelling Completions | Variance from Target (%) |
|---|---|---|---|
| National | 60,000 | 44,884 | -25.2% |
| Australian Capital Territory | 1,053 | 943 | -10.4% |
| Northern Territory | 571 | 122 | -78.6% |
| New South Wales | 18,822 | 11,220 | -40.4% |
| Queensland | 12,287 | 8,177 | -33.4% |
| South Australia | 4,191 | 3,104 | -25.9% |
| Tasmania | 1,306 | 704 | -46.1% |
| Victoria | 15,316 | 15,302 | -0.1% |
| Western Australia | 6,454 | 5,924 | -8.2% |
What needs to change?
Matt Kandelaars, Property Council Executive on Policy and Advocacy, isn't surprised that Australia has so far fallen short of the housing accord target.
"I don't think anyone really expected that from day one we'd be hitting those targets, it will take a little bit of time to ramp up," he told the Savings Tip Jar podcast.
Enough boots on ground
Moving forward, he feels policy makers need to prioritise making sure there are enough tradies in the residential construction sector to build the extra properties.
"In WA...the mining sector - and in Victoria and New South Wales mega infrastructure projects - are drawing tradies away from residential construction," Mr Kandelaars said.
He also believes immigration policy needs to take into account the shortfall.
"Less than two in every 100 skilled migrants coming into Australia has carried with them a construction trade; that's far too low," he said.
"Both parties have flagged a lower overall migration intake, but even with a lower intake we've really got to address...getting people in to deliver the homes we need.
"The sparkies, the plumbers, the carpenters, the tilers, you name is, there's a shortage across every trade."
Zoning and red tape
Another issue Mr Kandelaars believes must be addressed if the Housing Accord targets are to be met are zoning laws in the major cities.
"State planning systems have not been fit for purpose for some time," he said.
"We need to address the challenges and the blockages in the system, particularly when it comes to questions of density."
Part of the $900 million National Productivity Fund, announced late last year, will go towards funding planning and zoning reforms and removing other barriers to construction productivity.
Analysis from CoreLogic in November 2024 suggested the number of viable new units that could be built across Australia's capital cities could number more than three million.
Are things picking up?
From October to December there were 45,882 new dwellings approved for construction per the ABS.
That still looks well short, but the trend is encouraging - that's the highest number of new dwellings approved in a quarter since the three months to December 2022.
The surge is seemingly being driven by new townhouses and apartments, with the number of private sector dwellings excluding houses steadily on the rise since February last year.
In December there were 6,209 such approvals, the highest monthly number since May 2023.
Picture by Brett Jordan via Unsplash
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