Financial Review
The supply of housing could substantially miss the national target of 1.2 million new homes over five years by one third or even more as builders and developers grapple with high construction costs and a sluggish planning system, according to industry analyses.
Based on forecasts by industry lobby group the Urban Development Institute of Australia in a new report, the delivery of new homes will fall 393,000 dwellings short of the target for the combined capital cities alone by 2029.
Two years ago, the federal and state governments agreed a target of 1.2 million new homes to be delivered over the five years from mid-2024, known as the National Housing Accord.
But the UDIA analysis shows the production rate of both greenfield homes and apartments has slowed dramatically below average. It forecasts an 11 per cent decline in new dwelling production in 2025, a slowdown that will ultimately put upward pressure on prices for all kinds of housing.