Australia housing targets slip amid skilled labor shortages

Australia is currently trailing its National Housing Accord target of building 1.2 million homes within five years. Data from the Australian Bureau of Statistics indicates that 355,817 dwellings were completed in the first two years of the program, leaving a deficit of 124,183 homes against the required pace to meet the mid-2029 deadline.

While the number of dwellings under construction has reached a record high of 248,733, the quarterly completion rate of 47,168 homes remains below the necessary run rate of approximately 70,000 per quarter. Despite this, there are signs of momentum, with new housing starts increasing by seven per cent, largely driven by a rise in detached house construction.

A significant barrier to meeting these targets is an acute shortage of skilled construction workers. Despite a rising national unemployment rate, the construction sector faces a deficit of approximately 141,000 workers. Experts suggest that without improvements in training, migration, and productivity, this labor shortage could expand over the next decade, further hindering the ability to supply homes, roads, and infrastructure for a growing population.