Nobody believes the government on housing

A meeting of the national cabinet in August 2023 agreed on a target of 1.2 million new homes to be built between 1 July 2024 and 1 July 2029.

This 1.2 million target requires 240,000 homes to be constructed every year, which is a level that is around 7% higher than the record single-year construction reached in 2017.

The latest dwelling approvals data from the Australian Bureau of Statistics (ABS) does not instill confidence, with only 15,119 homes approved for construction in May, a level that is nearly 25% below the construction target of 20,000 homes per month.

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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.