The Albanese government’s ambitious target of constructing 1.2 million new homes over five years is increasingly in jeopardy. Recent data reveals substantial difficulties in meeting these goals, highlighting a growing housing crisis in Australia:
- Completion Shortfalls: From March 2023 to March 2024, only 171,700 homes were completed—68,300 fewer than the 240,000 annual target set by the Labor party.
- Low Commencements: During the same period, 158,900 homes began construction, falling 81,100 units short of the target.
- Approval Deficits: By June 2024, only 163,300 homes received construction approval, which is 76,700 fewer than the goal.
- Demand vs. Supply: Despite high buyer demand, the issuance of loans for new homes was just 4,725 in June, marking a 15% decline from the 22-year average.
- High-Rise Building Challenges: Approvals for high-rise developments have hit their lowest level in over a decade across New South Wales, Victoria, and the nation as a whole.
- Economic Pressures: The construction sector is grappling with high interest rates, rising construction costs (up by 40% since the pandemic began), increased business insolvencies, and intense competition for resources from large government infrastructure projects.
To alleviate Australia’s housing shortage and rental crisis, experts suggest that a substantial reduction in net overseas migration might be necessary to ease the pressure on the housing market.
Navigating these complex issues requires expert financial guidance. ASK Financials offers tailored financial planning and investment advice designed to help you understand and respond to the current housing market dynamics. Our experienced team is here to support you through these challenging times with strategic insights and solutions.
For more information and personalised assistance, contact ASK Financials today.
Call us at 0433 944 055 or Book a Free Chat: https://tinyurl.com/askfinancials/
