Australia’s housing construction target downgraded

Tuesday 25 February 2025

The Albanese government has set a fantastical target of building 1.2 million homes over five years, equating to 240,000 homes a year.

As illustrated below, this is a level of construction that has never been achieved before. Current construction levels are tracking around 30% below the government’s target.

The latest housing projects from the Housing Industry Association (HIA) and Oxford Economics Australia suggest that construction levels will fall around 20% to 25% short of the government’s target at the end of the five years.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.