Australia housing target delayed to 2030 due to rising costs

Australia is projected to miss its target of building 1.2 million new homes by the end of the decade. According to the National Housing Supply and Affordability Council, the timeline has been delayed by another three months, with the goal now expected to be met by the end of 2030—18 months later than the original mid-2029 deadline.

While building approvals have increased by 26 per cent and commencements have risen by 15 per cent since July 2024, progress is being hindered by high interest rates and rising construction costs. Costs rose 2 per cent in the June quarter and remain 51 per cent higher than pre-pandemic levels. The Council noted that higher fuel and petrochemical prices stemming from the Middle East conflict have negatively impacted construction expenses, potentially reducing the financial feasibility of new projects.

Housing Minister Clare O'Neil stated that the government is working to reform a system that was not working for Australians, including investments in 55,000 new social and affordable homes. Meanwhile, critics have raised concerns regarding the effectiveness of the $10.9 billion Housing Australia Future Fund in providing homes for low-to-medium income earners.