Newly released Australian Bureau of Statistics data has shown another slow month for building approvals, with just 13,237 new dwellings approved in June, a 6.5 per cent decline since May.
Concerningly, only 163,000 homes were approved in the 2023/24 financial year, 77,000 homes short of our annual Housing Accord target said Master Builders Australia chief economist Shane Garrett.
"We saw a glimmer of hope during May, but this downturn in June means the industry is starting the Accords period on the wrong foot.
"This was driven by an 18.4 per cent reduction in higher density dwelling approvals, their lowest monthly total since July 2012.
"Annual building approvals are now at their lowest levels in over a decade despite strong signals from government to increase housing supply.
"If approvals continue at this level, Australia will fall 385,000 homes short of the 1.2 million Housing Accord target," Mr Garrett said.
Master Builders Australia CEO Denita Wawn added: "It's clear more needs to be done, particularly in policy areas outside of the housing portfolio which are driving up building costs and blowing out construction times."
"The industry is hopeful that the recent ministerial reshuffle will provide an opportunity for a refreshed 'whole of government' approach to the housing crisis.
"Addressing the housing crisis requires a holistic approach with input from multiple portfolios from industrial relations, infrastructure, procurement, immigration, to skills and training.
"Australian builders are willing and ready to get on with the job of building new homes, but they currently have one hand tied behind their back.
"The industry is being held back by worker shortages, slow planning approvals and critical infrastructure delays, as well as high taxes and charges deterring investment. Combined with industrial relations challenges and recent revelations of alleged union misconduct, costs and building times are blowing out.
"Over the last decade productivity in the industry has fallen 18 per cent and over the last five years building costs have increased by 40 per cent," Ms Wawn said.
