Australia’s goal to construct 1.2 million homes in five years has started poorly. Official figures reveal that the ACT, Victoria and Western Australia are leading with just over 18% of their targets met. Meanwhile, NSW, the Northern Territory and Tasmania are lagging behind, some delivering under 10% of their commitments. NSW has the largest target with 376,000 homes, yet has only achieved 11.3% of this. This points to broader national issues in planning and construction delivery.
The National Housing Accord, announced in 2022 and updated in 2023, set a national target of 240,000 homes each year. However, in the first year, output was short by 66,000 homes. Officials say the shortfall is not necessarily a nationwide failure but driven by differences between states. The federal plan expects states to contribute based on population, but readiness to build at this scale varies. With early results falling short, the Housing Minister has acknowledged the target as "aspirational."
Several states are struggling due to weaknesses in planning systems and limits on high-density building. Areas like the ACT and Victoria benefit from established processes for apartment construction, which support stronger early progress. In contrast, Tasmania, South Australia and the Northern Territory lack both infrastructure and interest from developers. In NSW, the housing approval process is slowed by fragmentation across state agencies and local councils.
The backlog shows the extent to which local rules and workforce shortages can disrupt national ambitions. NSW, despite having more homes under construction than any other state, is affected by skill shortages, strict zoning laws and planning delays. The Northern Territory is still rebuilding its capacity following a sharp drop in development activity after its last major boom. Achieving 1.2 million homes will require more than ambition. Structural reform will be essential to closing the gap.
