The Australian Bureau of Statistics (ABS) released its estimated count of Australia’s dwelling stock as of Q4 2024.
According to the ABS, the number of dwellings in Australia increased by 168,000 in 2024, up from 157,300 in 2023.
The Albanese government’s housing target commenced on 1 July 2024 and aims to build 240,000 homes annually for five years.
In the first six months of the target, only 94,200 dwellings were added to Australia’s housing stock, significantly below the 120,000 run rate required (admittedly, the target does not account for homes lost to demolition).
Independent housing analyst Cameron Kusher cautioned that “these estimates tend to be revised lower over the coming quarters so it is likely the figure will reduce”.
“We’ve started the Housing Accord target slowly and I don’t think it will be possible to claw it back”, Kusher said.
Recall that dwelling approvals also remain depressed, with just under 175,000 homes approved for construction in the year to January.
The reality is that the supply side of the housing market is likely to remain constrained due to:
- Structurally higher interest rates;
- Structurally higher building costs;
- Labour shortages; and
- High builder insolvencies.
The number one solution to Australia’s rental crisis is to significantly lower net overseas migration to a level compatible with the nation’s ability to build housing and infrastructure.
Otherwise, Australia’s housing market will remain chronically undersupplied and in shortage.
