Australian Housing Market Shows Mixed Trends Amid Target Shortfalls

Australia is currently behind its goal of building 1.2 million homes by mid-2029, with 355,817 dwellings completed in the first two years of the National Housing Accord. In the June quarter, 47,168 homes were built, and total dwellings under construction reached a record 248,733. Separately, property rental growth was 3.6% in the year to July, though advertised rents in capital cities rose 5.7% in the year to August. Furthermore, total dwelling approvals fell by 3.6% in July, driven by a 4.2% drop in house approvals.

The housing market trends indicate ongoing pressure on supply and affordability in Australia. While construction starts are rising, the failure to meet government targets and the decline in property values in most capital cities suggest continued market instability. The divergence between official CPI rents and advertised rents suggests potential future acceleration in rental costs.