Australia's Building Approvals Rise in May Amid Housing Shortage

Australia: Building approvals for new homes in Australia rose by 5.5 percent in May 2024, driven mainly by Western Australia. Despite this increase, the total dwelling approvals over the past 12 months amounted to 163,760, significantly below the annual target of 240,000 new homes needed to meet the National Cabinet’s goal starting from July 1, 2024. In the three months leading up to May 2024, approvals were 1.5 percent lower than the same period in the previous year, indicating a slow start to the ambitious plan of constructing 1.2 million homes over the next five years. This slow progress highlights the need to address longstanding housing shortages through reforms in tax, planning, land, and regulatory constraints.

In May, there were 14,180 residential building approvals, with 9,260 for detached houses and 4,920 for multi-units, the latter of which saw a 14.3 percent increase from previous months' low levels. However, multi-unit approvals over the three months to May 2024 were still 19.1 percent lower compared to the same period the previous year. Western Australia led in approvals, followed by Victoria, while New South Wales and the Northern Territory experienced significant declines. South Australia and Queensland saw modest decreases. The 43,000 approvals in New South Wales indicate the need for further action to address the housing supply issues effectively.

Source: Urban Australia