Australia Faces Significant Shortfall in Housing Construction Targets

Australia is facing a significant shortfall in housing construction, with all states lagging behind the nationally agreed target of building 1.2 million new homes by July 2029. New modelling by Master Builders Australia reveals the country is projected to deliver only 1.03 million homes within this timeframe, leaving a gap of 166,000 properties.

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The housing crisis is compounded by a severe shortage of construction workers. Housing Minister Clare O'Neil has emphasised the need for "boldness and ambition" to tackle the issue, noting that 90,000 additional workers are required to meet the residential construction demand. She called for action in the "real economy" rather than relying on speeches and political promises.

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High inflation, rising interest rates, and supply chain constraints are among the factors slowing housing development across the country. New South Wales, Victoria, and Queensland – which are expected to contribute the most to the national target – are all falling behind. NSW, for instance, is on track to deliver 303,280 homes, well short of its 377,000 target.

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Opposition housing spokesman Michael Sukkar has criticised the government's response, accusing them of "dragging their heels" on the issue, with only $3 billion of the promised $32 billion in housing funds distributed so far. Meanwhile, industry leaders like Denita Wawn of Master Builders Australia warn that, although market conditions may improve, more innovative approaches are essential to close the gap in housing supply.

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Read the full article here https://www.sbs.com.au/news/article/australia-will-fall-166-000-houses-behind-construction-targets-new-modelling-shows/xk1qhm2vq

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