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Master Builders Australia has welcomed the latest surge in new home building approvals, but warns much more will be needed to stay on track to meet the National Housing Accord target.
New data from the Australian Bureau of Statistics shows total home building approvals jumped by 11.9 per cent in June, marking the strongest monthly result since August 2022.
Master Builders chief economist Shane Garrett said the growth was driven by a 33.9 per cent increase in higher density approvals, while detached house approvals slipped by 1.5 per cent.
“Higher density home building will play a crucial role in achieving the Accord’s goal of 1.2 million homes over five years.
“Higher density activity has been stuck in the doldrums for nearly a decade. June’s result is encouraging, but we need far more momentum if we are to close the housing supply gap.
“The figures show that in the first full year of the Accord, less than 188,000 new homes were approved nationally, well below the required average of 240,000 per year.
“If approvals continue at the current pace, Australia faces a 263,000-home shortfall over the five-year target period,” Mr Garrett said.
Master Builders Australia CEO Denita Wawn: “To lift approvals further, we need urgent planning reform to reduce delays and cut red tape that holds back projects. Every day lost in the approvals process pushes us further away from our housing targets.
“Boosting productivity across the building and construction industry is equally critical. Builders are ready to deliver more homes, but labour shortages, slow planning systems and rising costs are holding us back.
“Builders will be watching closely to see what comes out of the Government’s upcoming economic reform roundtables.
“We need practical outcomes that reduce barriers, lift productivity and help us deliver the homes Australians desperately need,” Ms Wawn concluded.
Media contact: Dee Zegarac, National Director, External Affairs & Engagement
0400 493 071 | dee.zegarac@masterbuilders.com.au