Master Builders Australia reports that the National Housing Accord is increasingly off track, with new industry forecasts revealing a deepening housing shortfall since April. The latest data indicates that 180,500 homes were started in 2024–25, which is almost 60,000 below the Accord’s annual target of 240,000. Over the five-year term of the Accord, the projected shortfall has increased to 180,200 homes, up from the 160,000 shortfall predicted earlier this year.
According to chief economist Shane Garrett, the demand for housing is not being met due to projects being delayed by rising costs, low productivity, and extended construction times. He stated that urgent reform is needed to ensure the delivery of 1.2 million homes, which is unlikely to materialise under the current circumstances. Garrett also noted that no state or territory is currently on track to meet its respective targets. High-density housing supply is being constrained by planning and approval bottlenecks, and construction productivity has declined by 18 per cent over the last decade.
While housing remains a primary concern, the forecasts also indicate that civil and engineering construction has seen significant activity, reaching almost $138 billion in 2024–25. This represents the busiest year for the sector in a decade. Master Builders Australia is the peak body representing the building and construction industry. It provides advocacy, training, and services to members across the country.
