Building approvals fall short as industry calls for coordinated approach to housing crisis
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New home approvals in Australia have fallen to their lowest levels in over a decade, raising concerns about meeting national housing targets.
Australian Bureau of Statistics data shows only 13,237 new dwellings were approved in June, a 6.5% decline from May.
Shane Garrett, chief economist at Master Builders Australia, said only 163,000 homes were approved in the 2023/24 financial year.
“This is 77,000 homes short of our annual Housing Accord target,” Mr Garrett said.
He noted that higher density dwelling approvals fell by 18.4%, reaching their lowest monthly total since July 2012.
“If approvals continue at this level, Australia will fall 385,000 homes short of the 1.2 million Housing Accord target,” Mr Garrett warned.
Master Builders Australia CEO Denita Wawn called for a coordinated government approach to address the housing crisis.
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“It’s clear more needs to be done, particularly in policy areas outside of the housing portfolio which are driving up building costs and blowing out construction times,” Ms Wawn said.
She expressed hope that the recent ministerial reshuffle would lead to a refreshed ‘whole of government’ approach to the issue.
Ms Wawn highlighted several challenges facing the industry, including worker shortages, slow planning approvals, infrastructure delays, high taxes, and industrial relations issues.
“Over the last decade productivity in the industry has fallen 18 per cent and over the last five years building costs have increased by 40 per cent,” she said.
The industry body emphasized the need for input from multiple portfolios, including industrial relations, infrastructure, procurement, immigration, and skills and training.