Australia’s plan to fix its housing crisis hinges on one major goal: building 1.2 million new homes by 2029. This article cuts through the noise to give you a clear, data-driven update on the National Housing Accord.
By focusing exclusively on official figures and industry statistics, we’ll examine the key numbers that show exactly how close, or far, the nation is from hitting this ambitious target.
What is the National Housing Accord?
The National Housing Accord is an agreement between the Commonwealth, state, and territory governments of Australia, established to address the nation’s housing supply and affordability challenges.
The centrepiece of the National Housing Accord is an ambitious, shared national target: to build 1.2 million new, well-located homes over a five-year period.
The timeframe for this target officially commenced on 1 July 2024 and is set to conclude in June 2029. To meet this goal, the average rate of new home construction must be 240,000 dwellings per year, or 60,000 per quarter.
The Accord is supported by financial incentives, including a $3.5 billion New Home Bonus for states and territories that exceed their share of the initial target.
Progress so far (as of October 2025)
The first year of the National Housing Accord concluded with the release of Australian Bureau of Statistics (ABS) building activity data for the June 2025 quarter, revealing a significant shortfall in the required construction pace.
The total number of dwelling commencements (the start of new construction activity) recorded for the 2024-25 financial year, which covers the first year of the Accord, was 179,040 homes (Source: Housing Industry Association (HIA) analysis of ABS data).
This annual total of 179,040 commencements fell well short of the required 240,000 homes, resulting in a deficit of 60,960 homes in the first year alone.
Key figures for the final quarter of the first year (April to June 2025) highlight the scale of the challenge:
- Total Dwelling Commencements: 45,156 (Seasonally Adjusted). This figure is 4.4% lower than the previous quarter and well below the required quarterly pace of 60,000.
- Total Dwelling Completions: 40,524 (Seasonally Adjusted). This represents a 6.5% drop from the March quarter, indicating a slowdown in the delivery of finished homes
Source: ABS Building Activity, Australia, June 2025
Future outlook – can we do it?
The shortfall incurred during the first year of the Accord has escalated the requirement for the remaining four years of the program. To achieve the 1.2 million target, the construction industry must now deliver an average of 255,300 new homes per year, or approximately 63,825 homes per quarter.
The ability to meet this new elevated pace relies heavily on a strong and consistent pipeline of dwelling commencements.
Industry bodies have warned that, based on current performance and headwinds such as planning delays and labour shortages, the country is tracking towards a potential shortfall of nearly 200,000 homes by the 2029 deadline.
The focus for the building industry and governments is now on fast-tracking planning and regulatory reforms to unlock the necessary capacity and lift supply to the unprecedented levels required under the National Housing Accord.
Sources:
- https://treasury.gov.au/policy-topics/housing/accord
- https://www.smh.com.au/politics/federal/new-3-5-billion-incentive-for-states-to-lift-housing-target-20230816-p5dwyo.html
- https://hia.com.au/our-industry/newsroom/economic-research-and-forecasting/2025/10/1-2-million-target-too-important-to-abandon
- https://www.abs.gov.au/statistics/industry/building-and-construction/building-activity-australia/latest-release
- https://masterbuilders.com.au/housing-accord-suffers-60000-home-deficit-in-year-1/
