Labour's housing targets falling short

The Australian’s Matthew Cranston reported today on the latest Australian Bureau of Statistics Building Approvals data and despite an increase in annual dwelling approvals, the Australian Labor Government’s new home targets are unlikely to be met. Matthew included a timely comment from Oliver Hume Property Group’s chief economist, Matthew Bell.

Story highlights:

• Labor’s 1.2 million new homes target in the next five years will fall short by 285,000 dwellings
• Labor’s National Housing Accord Target is 240,000 new dwellings a year and as at the end of 2024, dwelling completions sat at 177,000
• Economists from Oliver Hume, Master Builders Australia, Commonwealth Bank, and Property Council Australia expressed concern over the shortfall in housing targets and meeting the country’s housing challenge
• “Even if completions rose to the same level that the current approvals imply, we are going to miss the five-year target of 1.2 million homes by at least 25 per cent,”

Oliver Hume’s Matt Bell said. “The recent downward trend and the dependence on unit approvals, which are currently struggling to convert into commencements, is concerning.”