The Housing Industry Association (HIA) is pressing the federal government to double down on affordable housing, arguing the National Housing Accord is not structured to produce the affordable homes Australians actually need.
The Accord, which rolled out last year, pledges 1.2 million homes over five years beginning July 2024 delivery in the first year has already fallen behind in 2025. While the Accord is hailed as a step toward solving the housing crisis, industry voices caution that it poorly balances social, affordable, and private-sector housing.
Affordable Housing Accounts for Only 0.83 Percent
Treasury data show that of the 1.2 million homes slated for delivery, a mere 9,962 will be affordable housing. This lands at just 0.83 percent of the entire program.Australia risks a shortfall of 462,000 homes by 2029, pushing prices and rents higher.
The affordable housing breakdown by jurisdiction is as follows:
- New South Wales: 3,100
- Victoria: 2,546
- Queensland: 2,049
- Western Australia: 1,076
- South Australia: 700
- Tasmania: 220
- Australian Capital Territory: 175
- Northern Territory: 96
State and territory governments promise to beef up the Accord with an extra 10,000 affordable homes. However, the HIA maintains that this boost is insignificant in comparison to the comprehensive housing rollout.
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HIA: Private Market Must Take the Lead
Jocelyn Martin, Managing Director of HIA, warned that the government’s housing plan risks missing the vital role that the private housing market plays in lowering affordability problems.
“Social and affordable housing is essential for the people who can’t buy a home, and we back efforts to increase that supply across the nation,” Ms. Martin said.
However, Ms. Martin noted that social and affordable housing only forms a small part of Australia’s housing landscape. The bulk of the government’s target for 1.2 million homes has to be aimed at the private market. Only then can we begin to reduce both purchase prices and rents.
Her statement shows continuing concern in the industry that government strategies are too focused and are not giving the private sector the support it needs to bring stability to the property market.
Call for Policy Reset
The HIA is calling on the recently appointed Minister for Housing, Clare O’Neil, to broaden the housing policy plan and ensure that supply grows in every housing segment.
“The more new homes we put up, the more social housing opens up for people who need it, and the better chance everyday Australians have to buy a house at a price they can afford,” Ms. Martin explained.
“It’s time for strong leadership on housing. Minister Clare O’Neil, along with Prime Minister Anthony Albanese, needs to reset the housing policy so it stresses building more homes at every level. The current plan is too limited and doesn’t really fix the long-term supply problem for the next generation of Australians.”
What This Means for Buyers and Investors
A tight supply of affordable 55,300 homes short in the first year; Q1 2025 completions (43,517) broadly missed the required pace will push first-time homebuyers to compete even harder in the private market. For these buyers, securing financing, getting preapprovals, and crafting smart borrowing plans will be more critical than before.
BeSmart Finance partners with employees, strategists, and business owners to determine what changes in government policy mean for monthly income and cash flow. If you are finding your paycheck stretched, it could be the right time to make some changes to the type of loan products you are using or test out a refinance.
Investors are also keeping a watchful eye. With property prices and rental yields closely linked to the number of homes on the market, many are adjusting how and when they borrow. A recent study of the RBA’s third interest rate cut in a row shows how financing changes can create new opportunities for both buyers and investors.
For any Australian seeking to purchase a home, mortgage brokers provide invaluable assistance. When policy changes come fast and housing prices feel high, brokers cut through confusion. They start by checking how much you can borrow, guide you through getting preapproval, and make sure you’re ready to act when a home you love hits the market.
Contact BeSmart Finance now to start planning and borrowing smarter. Our team listens to your past and present financial history and helps you make the best decisions to ensure your lifestyle remains aligned with your goals. Speak with our expert team at 0408 659 819 today! Visit our website at www.besmartfinance.com.au to explore more. You can also book a one-on-one consultation at your convenience by clicking here.
