Australia 'lagging' behind insufficient 1.2 million new homes target, REA Group senior economist Anne Flaherty declares

Sky News AU

10 hours ago

Aussies desperate to break into the nation's housing market have been delivered a devastating reality check as Labor attempts to boost housing supply.
The Albanese government has promised to build 1.2 million new homes by 2029.
However, construction efforts in Australia have not matched up to the target which are also insufficient to meet the nation's housing needs, REA Group senior economist Anne Flaherty said.
'We are lagging,' Ms Flaherty said on Business Now.
'There are some positive signs that things are picking up a bit but if we continue on the trajectory that we're already on, we're looking at around a 20 per cent shortfall in the government's target of 1.2 million houses or homes.
'I should add to that … (Labor's) 1.2 million new homes is really what we need to keep the ratio of supply of homes to the population steady from where we are.
'With population growth continuing to outpace forecasts, that's likely to mean that this 1.2 million new homes - which we are unlikely to achieve - would already be below what we would actually need.'
Ms Flaherty's warning comes as recent figures from the Australian Bureau of Statistics showed the nation is falling well short of its 1.2 million new home goal.
If the government were to achieve its target, it would need to ensure 240,000 are built each year.
However, ABS figures show that since the Housing Accord began in July 2024, only about 90,000 new dwellings have been completed.
There were 90,136 houses built from July to December 2024 under the Albanese government, almost the same amount delivered by the Morrison government over the same period in 2021.
The National Housing Supply and Affordability Council has projected the government will fall short of its target by more than 250,000 homes—or roughly 20 per cent.
In separate findings, the ABS found that younger Aussies are struggling more to get their foot in the door of the housing market compared to previous generations.
About half (55 per cent) of Millennials are homeowners, whereas 66 per cent of Baby Boomers were homeowners at the same age.
In 1984, the average Australian could buy a home that cost 3.3 times their annual income, while in 2025, the average person faces house prices 10 times their annual pay packet.
In the lead up to the 2025 Federal Election, both major parties put the nation's housing crisis under the microscope.
Labor pledged $10b to build 100,000 homes exclusively for first home buyers and promised to guarantee mortgages for homeowners that can put down a five per cent deposit.
The Coalition said it would allow home buyers to take upwards of $50,000 out of their super to put towards a down payment and vowed to unlock 500,000 new homes through $5b of investment in essential infrastructure.