Australia’s housing crisis has persisted for years, and the government has now set a bold target: 1.2 million new homes by June 2029. This significant undertaking could reshape the housing landscape.
Turning this vision into reality will require overcoming serious hurdles, including workforce shortages, planning delays, and high construction costs. Let’s break down the government’s plan, the hurdles in the way, and what needs to change for this ambitious target to become a reality.
Prime Minister Anthony Albanese recently admitted what many of us already know: building homes in Australia is ‘too hard’.
The government’s solution? Cut through the red tape, push the states to build more, and invest billions in new housing. Here’s what’s on the table:
- 1.2 million new homes by June 2029, including 55,000 social and affordable homes.
- $10 billion to help fund 100,000 new homes for first home buyers, with concessional loans for states.
- $2 billion for new or refurbished social housing.
- Fee-free Technical and Further Education and incentives for apprentices to tackle construction skill shortages.
It’s a comprehensive package, but the big question is: can it actually be delivered?
According to the National Housing Supply and Affordability Council (NHSAC), the numbers don’t quite add up.
Their latest report forecasts that about 938,000 dwellings will be completed by June 2029. After accounting for demolitions, that’s a net gain of 825,000 homes—well short of the 1.2 million target.
Still, NHSAC chair Susan Lloyd-Hurwitz said the target would bring us closer to ‘equilibrium’—where new supply matches new demand. But even she admits there’s likely to be a shortfall.
There are a few significant roadblocks:
- Red tape and planning laws: State planning regulations are notoriously complex, slowing down approvals and making building harder, especially in areas where housing is needed most.
- Construction costs: High interest rates, expensive materials, and labour shortages have made it tough for developers to get projects off the ground
- Zoning restrictions: In some parts of Sydney and Melbourne, building higher-density housing is illegal, even where it’s desperately needed.
- Productivity woes: The construction sector’s productivity has dropped 12 per cent over three decades, and the average time to build a home has ballooned from 6.4 months to 10.4 months in the past decade.
What needs to change?
Experts agree: if Labor is serious about hitting its target, it must focus on planning reform and more social housing.
- Streamlining approvals: During the COVID-19 pandemic, governments showed they could fast-track regulations when needed. Why not do the same for housing?
- Modernising construction: Australia lags behind countries like Sweden in using modular and prefabricated building techniques, which can cut costs and speed up delivery. The government has pledged $54 million to support this, but experts say it’s just a start.
- Fixing the construction code: The current code is over 2,000 pages long and varies between states, making it a nightmare for builders. Simplifying and standardising the code could boost productivity and encourage innovation.
- Incentivising states: Some say the federal government should pay states for progress each year, not just at the end of the five years, to keep the pressure on.
Housing Minister Clare O’Neil is confident the government will deliver 55,000 social and affordable homes by 2029, with 28,000 already in the pipeline.
But the NHSAC said we need ‘roughly four times’ that amount to meet demand.
The opposition isn’t convinced. They argue that simply paying states to build more hasn’t worked so far, and that federal funding should be tied to strict conditions and targets.
They’re also calling for a rethink of the construction code to make building all housing easier.
If you’re a homeowner, you might be wondering how all this will affect property values or whether your children and grandchildren will ever be able to buy a home.
If you’re renting, you’re probably hoping for more affordable options and less competition for every available property.
The promise of more diverse housing—including townhouses and apartments near transport—could open new possibilities for those considering downsizing. But until the red tape is cut and the cranes start moving, it’s a waiting game.
Do you think Labor can deliver on its promise of 1.2 million new homes? Have you or your family been affected by the housing shortage? What changes would you like to see in Australia’s housing market? Share your thoughts in the comments below.
Also read: Labor has promised to tackle homelessness. Here’s what homeless people say they need
Tell them their dreaming.