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14 January 2026
Master Builders Australia (MBA) warns that the Government may again fall short of the National Housing Accord target of 240,000 new homes per year for a second financial year in a row.
It was uncovered in October 2025 that Australia fell short of its target by over 60,000 new houses during the Housing Accord’s first year showing the challenges in the building and construction industry must be confronted before Australia falls further behind yet again.
At the time MBA CEO Denita Wawn stressed that accelerating approvals, streamlining regulation, addressing skill shortages, and supporting private investment was needed to get more projects moving.
“MBA has continued to advocate for these measures as our industry does not want to see a repeat of the first year’s shortfall and stands ready to deliver more homes for Australians driving affordability for all.
“The time is now for groundbreaking, common sense and evidence backed reforms that accelerate home building, surrounding infrastructure delivery and economic prosperity.
“Since October, we have seen building approvals improve however not at a pace needed to meet the Government’s targets. In addition, the Productivity Commission has reported recommendations to improve skill gaps and boost productivity with all this now needing decisive, innovative and deliverable actions from the Federal Government.
“New figures from the Australian Bureau of Statistics (ABS) released today show job vacancies in the building and construction industry are now at their lowest level since November 2020, which may be a sign of business hesitation due to uncertain economic conditions.
“This is informed by concerns around possible Interest rate hikes early this year and small business profit margins continuing to be exceptionally tight. These conditions must be improve including the Government getting a further handle on inflation and working to boost productivity.
“They must get a move on and fast track changes that positively impact the industry including setting a clear target to reduce red tape and by having a clear agenda for regulatory reform and burden reduction.
“With every $1 million of residential building work ultimately generating over $2.5 million in extra economic activity, the bonus is that getting this right will push economic conditions in the right direction for all Australians.
“On the labour front, we have reported that current data shows that the construction apprentice pipeline is shrinking and leaking, with new starts down and more apprentices leaving than finishing. The domestic labour pipeline must be elevated by demolishing the university bias, building more VET programs in schools and further expanding incentives for apprentices past December 2026.
“These warnings need to be listened to, with the shortfall last year meaning we now need to deliver an average of 255,300 new homes per year over the remaining four years of the Accord. Australia can’t afford for this bar to be raised any further and neither can the Government.
“We must get these policy settings right for future generations before it’s too late,” concluded Ms Wawn.
Media contact: Dylan Hafey, Media Advisor
0497 330 064 | dylan.hafey@masterbuilders.com.au