Australia’s housing supply crisis drives calls for large-scale construction solutions
Australia’s ongoing housing supply crisis is intensifying, with the nation falling well short of the National Housing Accord target of 240,000 new homes per year. In 2024, the average annual output was just 177,000 homes, highlighting a significant shortfall that is fuelling affordability pressures nationwide.
Meeting Accord targets would require massive urban infill
Experts warn that even reaching the Accord’s target would require adding 33.6 km² of new housing each year across established suburbs—an area equivalent to 26 Melbourne CBDs. This scale of urban infill presents major logistical and planning challenges for cities already grappling with infrastructure and density concerns.
Radical solutions proposed: apartments, land repurposing, national oversight
To address the shortfall, experts are proposing radical solutions, including a shift towards large-scale apartment developments, the introduction of national planning oversight, and the repurposing of underutilised land such as golf courses and parks for residential construction. These measures aim to accelerate delivery and maximise land use in high-demand areas.
Infrastructure projects crowding out housing supply
Major infrastructure projects such as new roads and tunnels are increasingly crowding out opportunities for residential development. This competition for space is further intensifying the housing supply imbalance and making it more difficult for cities to accommodate growing populations.
Urgent reform needed to address housing and affordability challenges
Industry leaders and policymakers are calling for urgent reform to streamline planning, incentivise large-scale residential builds, and ensure infrastructure delivery supports, rather than hinders, new housing supply. Without decisive action, the gap between housing demand and supply is expected to widen, exacerbating affordability issues for Australian families.
