Despite a small uptick in building approvals over the month of December, Australia fell short by 68,606 homes of its annual 240,000 housing target in 2024.
According to the Australian Bureau of Statistics, there was a very slight increase (+0.7 per cent) in the volume of new home building approvals during December 2024.
This was the result of a 6.0 per cent increase in higher density dwelling approvals during the month. However, detached house building approvals dropped by 2.8 per cent during December.
When looking at the yearly performance, 171,394 new homes received approval during 2024 overall, a modest gain (3.9 per cent) on the year before. This was driven by a 7.0 per cent gain in detached house approvals during 2024.
Currently, all states and territories have fallen short of their Housing Accord target if building continues at this pace.
Quotes attributable to Shane Garrett, Chief Economist, Master Builders Australia:
"In 2024, higher density approvals dropped back by 1.3 per cent, meaning 2024 was the worst year for higher density approvals since 2011.
"The insufficient flow of new home building on the higher density side of the market is one of the main sources of rental price inflation.
"Latest data indicate that rents rose by 6.2 per cent over the year to December 2024 – one of the biggest sources of inflationary pressure," Mr Garrett said.
Quotes attributable to Denita Wawn, CEO Master Builders Australia:
"Australia desperately needs to boost housing supply, and this will only be achieved when the cost of new home building starts to moderate, and project costs stack up.
"It's more than just a number - the lack of housing supply is leading to rising rents, homelessness, and higher mortgages, which impacts the well-being of individuals, families, and communities.
"This Federal Election, all parties must be clear on how they will help build more homes for Aussies.
"Over the coming weeks, Master Builders will be releasing its election platform and pre-budget submission with what policy areas require further investment or action to facilitate more investment in home building," Ms Wawn concluded.
