Outlook worsens for government to meet 1.2 million houses promise
Government advisors extend their outlook on when 1.2 million homes will be built, as developers, builders and investors wait to see whether the housing market will settle or fall further.
The government's expert panel has concluded that Australia will not meet its target of constructing 1.2 million new homes by the end of 2030, as initially expected. The uneven success across states and territories has led to this revised outlook, with New South Wales (NSW) not expected to reach its share of the housing goal until March 2032.
The federal government attributes the slowdown in housing construction primarily to interest rate pressures and the recent overhaul of the tax system. The National Housing Supply and Affordability Council, which originally forecasted the target would be met by June 2029, has extended its outlook and now expects the target to be reached at the end of 2030.
The federal budget's major rewrite of tax perks for housing investors and the Reserve Bank's decision to raise the official cash rate to 4.35% have also contributed to the housing market's challenges. While Victoria, Queensland, South Australia, and the Australian Capital Territory (ACT) have made progress in meeting their respective shares of the target, NSW is projected to fall short of its obligations until March 2032.
The opposition has criticized the government's current pace, claiming they will fall about 200,000 homes short of the National Housing Accord target.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
