Building rebound not enough to hit national target, industry leaders say

NEW home construction remains behind the nation’s 1.2 million National Accord target, latest Australian Bureau of Statistics data suggests.

Industry bodies reacted to the release of figures that showed the number of new dwellings that had commenced in the March quarter was the highest since 2022.

But the 47,645 new dwelling commencements is behind the 60,000 that is needed per quarter, they say.

Both the Property Council and Master Builders Australia say more needs to be done.

The Property Council’s Matthew Kandelaars said: “Progress against our housing targets was never going to be linear, but we’ve reached the point where we need to hit housing delivery in top-gear just to keep pace, let alone get ahead.

“Official data show we’re running 18,147 homes behind target.

“Yet another quarter of poor numbers means more disappointment for future homebuyers and renters.

“We also saw a welcome uplift in building approvals in May, but the number of homes getting off the ground remains stalled.

“That’s a real concern because too few building commencements means too few completions and that means fewer homes in the long run.”

Master Builders Australia CEO Denita Wawn also welcomed the rebound but warned it was not enough to stay on track.

“At 47,645 new dwellings, it’s the strongest quarter since June 2022.

“Despite this uplift, we are still tracking behind what’s required to meet the National Housing Accord targets.

“Since the commencement of the Housing Accord, just 134,466 new dwellings have commenced.

“To stay on track, we would need around 60,000 starts per quarter – we are about 25 per cent short of that pace.

“While there is room for optimism that the worst is now behind us, the government and industry need to play catch-up if we’re going to meet the 1.2 million new homes target under the National Housing Accord.”

According to Mr Kandelaars homes are taking twice as long to build as they were 30 years ago.

Ms Wawn said: “Productivity in the building and construction industry has fallen 18 per cent over the last decade, even as housing costs have surged by over 40 per cent.

“The upcoming Federal Government productivity roundtable provides an opportunity for major stakeholders to fix the biggest pinch points that are holding construction back and prolonging the housing crisis.”