Australia housing construction falls short of target

Australia's housing construction is significantly behind the pace needed to meet the government's target of 1.2 million new homes by 2029, as set under the National Housing Accord. Two years into the agreement, completed home construction is 27% below the required quarterly average of 60,000 dwellings. The construction industry faces severe capacity constraints, including labor shortages, rising material costs, and higher financing costs. In Australia — Brisbane, builders are forced to pour concrete at night due to worker shortages, and construction times have lengthened dramatically: apartments now take 33 months to complete versus 21 months a decade ago, and houses take 11.5 months versus 8.6 months. Nearly 70% of approved apartments since 2020 have not started construction. The Housing Industry Association forecasts a 15% shortfall against the target. Cost pressures have led to 3,472 construction firm insolvencies in the last financial year. The Australia — Reserve Bank of Australia has raised the cash rate to 4.35% in 2026, further dampening demand. Builders and analysts warn that the supply constraints undermine affordability and the government's housing strategy.