The federal government’s plan to facilitate the construction of 1.2 million homes in five years officially started on 1 July. But the latest homebuilding approvals figures suggest the government will struggle to achieve its target.
A total of 14,175 approvals were issued in May, which was 5.5% higher than the month before but 8.5% lower than the year before, according to the Australian Bureau of Statistics.
Over the 12 months to May, only 163,760 approvals were issued; by contrast, the government’s plan calls for the building of 240,000 new homes per year over five years.
“The low approvals numbers indicate a slow start to building 1.2 million homes over the next five years,” Housing Industry Association chief economist Tim Reardon said.
“Increasing the number of homes built will be necessary to address longstanding housing shortages. Addressing tax, planning, land and regulatory constraints will be necessary to increasing the supply of homes in Australia.”
Got questions? Let’s chat.
Our team is here to provide expert guidance and tailored solutions that work for you. Reach out today and experience the Finestream Standard, finance, the way it should be.
