Let’s take a quick stocktake of Australia’s housing supply situation.
Over the first 18 months of the Albanese government’s National Housing Accord, which set a target to build 1.2 million homes over five years, commencing on 1 July 2024, 97,400 (27%) fewer homes were built than required under the target:
Earlier this month, CBA updated its housing supply forecasts, which estimated that around 15,000 fewer dwellings would be built by late 2029 due to higher construction costs.
In CBA’s baseline scenario, only 885,000 homes will be completed over the five-year National Housing Accord period to 2028-29, which is 315,000 (26%) fewer than the 1.2 million construction target.
At the same time, the latest federal budget upgraded net overseas migration by 55,000 over the next two years, which will obviously add significantly to housing demand.
Therefore, Australia’s rental crisis, which is already the worst in living memory, is destined to worsen with demand via population growth continuing to run well ahead of supply.
With this background in mind, it was disturbing to see Prime Minister Anthony Albanese celebrate the delivery of 45 new social and affordable homes in Melbourne:
As pointed out by Louis Christopher, founder of property analytics firm SQM Research, “that’s about enough for 5 minutes of underlying national demand”, with Labor “many thousands of homes behind their target of 1.2 million dwellings by 2029”.
The above is a perfect reflection of the state of housing policy in Australia and the gaslighting from Labor.
The government has literally run the most aggressive immigration intakes in the nation’s history, repeatedly exceeding its own budget forecasts.
Chart by Tarric Brooker (Avid Commentator)
The federal government has, therefore, created the housing shortage by running an absurdly large immigration program that is far beyond the absorptive capacity of the nation, only to then spruik the addition of a paltry 45 new homes.
They repeatedly treat us like mugs.
