Building approvals drop highlights rocky foundations says Master Builders

8 January 2025

Despite positive numbers earlier in the year, newly released data for November 2024 showing a drop in new home building approvals demonstrates the need for process improvements says Master Builders Australia.

Data released yesterday showed a 3.6 per cent reduction in the total number of new home approvals for the month of November 2024 when compared with earlier months.

Detached housing approvals dropped 2.2 per cent during the month and there was a 5.6 per cent reduction in higher density approvals.

Over the year to November 2024, 169,140 new homes received approval, about 30 per cent lower than required to achieve the 1.2 million target by mid-2029 under the National Housing Accord.

Quotes attributable to Shaun Schmitke, Acting Chief Executive, Master Builders Australia

“Despite some positive signs in 2024, these latest figures highlight the need for us to remain focussed on the need to remove the roadblocks still holding Australian builders back.

“To address the housing crisis and meet the 1.2 million new homes target in the next four and a half years, we need action to streamline approvals processes, bring down costs and speedup the time it takes to build a new home.

“This will require a whole-of-government approach to tackle the challenges and remove roadblocks, and we need all sides of politics committed to tangible solutions so we can let Aussie builders get on with the job they are ready and willing to do.”

Quotes Attributable to Shane Garrett, Chief Economist, Master Builders Australia:

“The past five years have seen about 942,000 approvals for new homes, which is around 250,000 short of the 1.2 million required by the Accord. At the current rate of approvals in the 12 months to November, we are about 30% lower than what we require.

“We need to see a fast improvement in the approvals number if Australia is to have any chance of meeting that 1.2 million home target.”

Media contact: Ben Conolly, Senior Advisor, Media & Public Affairs
0423 151 666 | ben.conolly@masterbuilders.com.au