New national data highlights how far Australia has progressed toward achieving its ambitious housing target, revealing why some states are advancing faster than others. According to the National Housing Agreement, governments at all levels agreed on a unified goal to build 1.2 million new homes over five years, up to June 2029.
The target was first established on July 1, 2024, and allocated across states and territories based on population density, meaning that progress is measured locally as well as monitored nationally. Since the agreement’s announcement, analysts have continuously provided insights to evaluate the country’s performance against this commitment.
Over the past year, industry bodies and real estate groups released their own reports to gauge how the first year’s results aligned with expected targets. However, last week saw the release of the most detailed official report to date, with the National Housing Supply and Affordability Council presenting its first quarterly report to assess progress under the agreement’s framework.
This council, established under the National Housing Act of 2023, plays a central role in advising the Housing Minister on national policies, as well as conducting analyses on supply, affordability, and the performance of the overall housing system. The report indicates positive signs for a strong start but also highlights the scale of work still required, identifying timing disparities between states in achieving the agreement’s objectives.
At the national level, building approvals and project commencements have increased by 17% since the agreement came into effect, with more than 219,000 new homes completed over the past five quarters. The sector has also seen noticeable improvements in construction conditions; home building is progressing 10% faster compared to last year, while real construction costs have slightly decreased when adjusted for inflation.
The dataset shows that Australia is moving in the right direction to achieve the target, but results remain uneven across regions. Moreover, the current pace of progress is still below what is required to ensure the final goal is met by 2029 without any delays.
