Master Builders Australia has welcomed the latest surge in new home building approvals, but warns much more will be needed to stay on track to meet the National Housing Accord target.
New data from the Australian Bureau of Statistics shows total home building approvals jumped by 11.9 per cent in June, marking the strongest monthly result since August 2022.
Master Builders chief economist Shane Garrett said the growth was driven by a 33.9 per cent increase in higher density approvals, while detached house approvals slipped by 1.5 per cent.
鈥淗igher density home building will play a crucial role in achieving the Accord鈥檚 goal of 1.2 million homes over five years.
鈥淗igher density activity has been stuck in the doldrums for nearly a decade. June鈥檚 result is encouraging, but we need far more momentum if we are to close the housing supply gap.
鈥淭he figures show that in the first full year of the Accord, less than 188,000 new homes were approved nationally, well below the required average of 240,000 per year.
鈥淚f approvals continue at the current pace, Australia faces a 263,000-home shortfall over the five-year target period,鈥 Mr Garrett said.
Master Builders Australia CEO Denita Wawn: 鈥淭o lift approvals further, we need urgent planning reform to reduce delays and cut red tape that holds back projects. Every day lost in the approvals process pushes us further away from our housing targets.
鈥淏oosting productivity across the building and construction industry is equally critical. Builders are ready to deliver more homes, but labour shortages, slow planning systems and rising costs are holding us back.
鈥淏uilders will be watching closely to see what comes out of the Government鈥檚 upcoming economic reform roundtables.
鈥淲e need practical outcomes that reduce barriers, lift productivity and help us deliver the homes Australians desperately need,鈥 Ms Wawn concluded.
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