The federal government’s plan to facilitate the building of 1 million new homes from 2024 is under pressure, based on the latest data from the Australian Bureau of Statistics.
Over the five years to April 2023, only 965,548 residential building approvals were issued – and not all of those properties will end up being constructed, as some developers and home owners choose not to proceed after getting approval.
By comparison, 1,116,198 approvals were issued in the five years to April 2018.
Building approvals have been trending down since March 2021. They will need to pick up soon if the government is to meet its target.
The reason the government is so keen to increase the housing supply is to reduce demand, and therefore keep housing more affordable. Conversely, if supply fails to keep up with demand, property prices are likely to keep rising.