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Australia misses first-year housing target by more than 68,000 dwellings

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Photo by Alexander Tencio

Building approvals across Australia have fallen significantly short of government targets, with new data showing a 29 per cent shortfall in the first year of the National Housing Accord.

Australian Bureau of Statistics data analysed by Money.com.au revealed only 171,394 building approvals were granted in 2024, well below the annual target of 240,000 needed to deliver 1.2 million new homes by 2029.

The shortfall means Australia now needs 276,994 building approvals annually over the next four years to meet the government’s target.

Money.com.au Property Expert Mansour Soltani said ongoing industry challenges were hampering construction efforts.

“Supply constraints, rising material costs, and planning delays continue to hold back construction and development in Australia. Without meaningful reforms to fast-track approvals or ensure builders can afford to ramp up projects, the gap between housing demand and supply could widen even further,” Mr Soltani said.

Despite missing the target, building approvals increased 10 per cent nationally in the second half of 2024 compared to the same period in 2023.

Western Australia led the growth with a 50 per cent increase, adding 3,735 more dwellings.

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Queensland recorded 19,785 new approvals, up 23 per cent, while South Australia saw a 21 per cent rise to 7,021 dwellings.

Victoria and NSW showed more modest gains of 4 per cent and 3 per cent respectively, though the two states accounted for 56 per cent of all approvals nationwide.

The Australian Capital Territory saw the steepest decline, with approvals dropping 75 per cent to just 808 in the second half of 2024.

Tasmania also recorded an 8 per cent fall to 1,235 approvals.

Money.com.au Data & Research Expert Peter Drennan said NSW and Victoria’s performance was crucial for national housing supply.

“NSW and Victoria are the engine rooms of Australia’s housing market โ€” if they stall, the whole country feels it. While some states are picking up the slack, we simply won’t bridge the housing gap without strong and consistent growth in these two powerhouses,” Mr Drennan said.

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