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{{propApi.successMessage}} {{region}} Change locationHome approvals rising but structural reforms needed to meet 1.2 million homes
Home approvals rising but structural reforms needed to meet 1.2 million homes
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The Australian Bureau of Statistics today released its monthly building approvals data for February 2025 for detached houses and multi-units covering all states and territories.
“Home building activity across a number of Australian markets was already improving heading into 2025,” added Mr Devitt.
“Confidence has been improving on the back of strong population growth, near-record low unemployment, and recovering real incomes. Low rental vacancy rates and rising rents were bringing investors back to the market. And even before the RBA’s February rate cut, interest rates had been relatively stable since mid-2023.
“The RBA’s February rate cut will provide a welcome extra boost, but structural reforms are needed to properly address Australia’s housing affordability crisis.
“Medium-to-high density housing activity, in particular, has been around just half its required volumes over the last year, constrained by labour shortages, finance costs and punitive government taxes and regulations.
“This has funnelled improving market conditions back into the detached housing sector, but housing of all types needs to contribute to the Australian government’s target of 1.2 million new homes over five years.
“Reforms are required across multiple policy fronts, including skilled migration, tax, regulation, planning, approvals, land supply and infrastructure provision.
“Western Australia, Queensland and South Australia have been driving the improvement in home building volumes over the last year, while New South Wales and Victoria have been held back by prohibitively high land costs.
“These diverging fortunes are a vivid illustration of the brightest outlooks being dependent on the ability to provide affordable, shovel-ready land, adequately serviced with utilities, transport and other essential infrastructure,” concluded Mr Devitt.
HIA is calling on the Australian Government in the lead-up to the Federal Election 2025 to help remove barriers to new housing supply. To find out more about HIA’s Election Imperatives.
“Home building approvals in the three months to February 2025, in seasonally adjusted terms, were up by 48.4 per cent in South Australia, followed by +30.2 per cent in Western Australia, +28.1 per cent in New South Wales, and +24.1 per cent in Victoria, while Queensland was flat (+0.2 per cent) and Tasmania declined (-3.8 per cent). In original terms, the Northern Territory was more than double (+121.0 per cent) the equivalent quarter last year, while the Australian Capital Territory was down by 25.9 per cent.
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