Australia is at risk of falling 462,000 homes behind its national housing target by 2029, worsening affordability challenges for buyers and renters.
NSW faces the biggest shortfall (185,000 homes), followed by Queensland (96,000) and WA (56,000).
The impact? Housing supply constraints could drive up prices and rental costs, making homeownership increasingly out of reach.
However, if the target is met, renters could save an average of $90 per week, and economic benefits could include $128 billion in activity and 368,000 new jobs.
To address the crisis, the Property Council of Australia is calling for urgent reforms to the New Homes Bonus, a $3 billion federal incentive for states to boost housing supply.
Their proposal includes increasing funding to $6 billion, extending the program to seven years, and improving transparency to ensure accountability.
As Property Council CEO Mike Zorbas warns:
“Boosting housing supply is the only long-term, sustainable way to improve affordability.”
With housing demand continuing to outstrip supply, government action is critical to avoid further strain on the market.
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