Australia Misses Housing Targets as Senate Launches Fund Inquiry

The National Housing Supply and Affordability Council forecasts that Australia will not meet its target of building 1.2 million new homes until the end of 2030, an 18-month delay from the original mid-2029 deadline. While building approvals and commencements have increased since July 2024, the council noted that higher interest rates and construction costs—driven in part by conflict in the Middle East—have hindered progress.

Parallel to these supply shortages, the Australian Senate has launched a six-month inquiry into the social and affordable housing sector and the $10.9 billion Housing Australia Future Fund. The investigation follows an Australian National Audit Office report showing the fund delivered only 1,432 homes, missing its 40,000-home target by a significant margin nearly two years into its five-year plan.

Housing Minister Clare O'Neil stated the government is investing in 55,000 new social and affordable homes to fix a system that was not working for Australians. However, Senator Barbara Pocock criticized the fund's slow pace and argued that the current definition of affordable housing fails low-income earners. The Housing Industry Association has called for the inquiry to specifically address workforce shortages and planning delays.