Australia’s Housing Targets Hit by Construction Slowdown

Australia: The Australian government's goal of constructing 1.2 million homes over the next five years appears increasingly unattainable as recent data from the Australian Bureau of Statistics (ABS) reveals that key indicators for dwelling construction—such as approvals, commencements, and completions—are hovering near decade-long lows.

For the year ending March 2024, Australia saw the completion of 171,700 homes, falling short by 68,300 homes compared to the government's annual target of 240,000. The outlook for future construction activities is similarly bleak.

In the same period, only 158,900 dwellings commenced construction, missing the target by 81,100 homes. Furthermore, approvals for new dwellings up to June 2024 totaled 163,300, which is 76,700 below the government's expectations.

The market for new homes is also showing signs of strain. In June, only 4,725 loans were issued for the purchase or construction of new homes, which is 15% below the historical average over the past 22 years.

This data suggests significant challenges in meeting the government's housing targets, reflecting broader issues in the construction sector and buyer demand.

Source: Macro Business