Australia has approved 54,156 fewer homes than needed in the first year of the Housing Accord target of 1.2 million new homes by 2029, but new Australian Bureau of Statistics (ABS) approvals data released today shows signs of solid improvements.
According to ABS data, a total of 185,844 homes were approved across FY24/25, in original terms. This is fewer than the 240,000 homes we need to approve at a minimum each financial year to hit our targets.
However, this is 22,152 higher than the previous financial year, a 13.5 per cent increase.
There has also been a rise in the number of apartment approvals, with 42,387 new apartment dwellings approved in the FY24/25. This is a 42.1 per cent rise from 29,826 in 2023-24.
Property Council group executive policy and advocacy Matthew Kandelaars said the National Housing Accord has helped to boost housing approvals across the country.
“These numbers highlight the mountain we need to climb, but it is good to see a healthy increase in the number of housing approvals,” Kandelaars said.
“This goal was never going to be easy, but striving for it will serve all Australians who dream of owning their own home.
“The National Housing Accord has sparked a commitment from governments across the nation to tackle housing supply, and that should be celebrated, but far more needs to be done.
“We can see this in the data, with a 13.5 per cent increase in the number of housing approvals completed in the last financial year.
“Pleasingly, there has been a solid increase in the number of apartments approved. Apartment approvals are liable to volatility, but a year of solid growth is a positive sign.
“While there have been improvements in the last financial year, the data shows we are still not approving enough homes.
“Too many projects are getting stalled in the thickets of regulation. We need to unlock more homes by removing planning and environmental red tape to push assessments through the system sooner and with greater certainty.
“All of this is adding layers of delay and confusion, even before considering the investment settings required to take projects from approval to commencement. In particular, state-based taxes amounting to up to four in every 10 dollars of the cost of a new home are turning their noses to our national need to deliver more homes to rent or to buy.”
The total number of dwellings approved rose 11.9 per cent in June to 17,076, according to seasonally adjusted data from the ABS, driven by a surge in apartment approvals.
In original terms, approvals for apartments rose 12.2 per cent, following a 30.9 per cent rise in May.
“It is also pleasing to see home approvals in June reach their highest levels since August 2022,” Kandelaars said.
“Building on this growth will be vital for reaching our housing targets by 2029.”
