Urban Development Institute of Australia (UDIA) expressed concern at the fall in both commencements and completions revealed in the Australian Bureau of Statistics today.
In the first full year of data since the National Housing Accord was announced, it shows us that we are making minor headway in some aspects, but the overall decade averages tell a different story.
The chart below shows how Australia is tracking against the housing accord.
The 2024 calendar year results show an 18% decline in total dwelling completions and commencements. The total number of dwelling units commenced fell 4.4% to 41,911 dwellings. New house commencements fell 6% to 26,550 dwellings.
“These numbers show why both political leaders need to make number one priority in this federal election,” said Col Dutton, UDIA National President.
The graph below shows the commencements and completions across detached housing and units with both falling. Each year that shows a decline in completions, means that it will be even harder to close the housing supply gap.
The root causes of dwindling commencements and completions include a lack of enabling infrastructure, slow planning and environmental approvals, skills shortages constraining capacity and high cost of construction, undermining project viability. Each of these is creating a feedback loop of spiraling housing affordability and supply shortfall.
UDIA’s suite of solutions outlined in our Federal Election Policy Fast Track Housing Delivery include continuing to focus on measures that drastically increase housing delivery capacity – enabling infrastructure, upfront incentives to build more housing, attract skilled labour, halve approval times and increase density bonuses.
“Today’s data highlights the importance of housing targets for us to be able to properly track what is happening in the market and will be a valuable tool in the coming years to drive a turnaround in both commencements and completions and ramp up housing supply,” said Col Dutton.
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Media Enquiries:
Deanna Lane | Director, UDIA National Media & Communications | 0416 295 898 | media@udia.com.au