Qld housing crisis: Why 600k new homes are going begging

There is space for nearly 600,000 homes across council-approved sites in Queensland, but barriers are preventing development.

There is space for nearly 600,000 homes across council-approved sites in Queensland, but barriers including costs and red tape are preventing development, according to the state’s local government peak body.

The latest push by the Local Government Association of Queensland to clear up development bottlenecks comes after new data revealed building approvals in the state had fallen to a five-year low.

According to the LGAQ councils across the state had zoned almost 600,000 new home sites — signalling the barriers to housing remain beyond what councils can control.

“Councils can zone for and approve as much housing as they like, but if it’s not commercially feasible to build, those approvals won’t deliver desperately needed new homes,” LGAQ chief executive Alison Smith said.

“While solving the housing crisis is complicated, three years on we can see the gaps that need action – activating existing approvals, paying for infrastructure, making sure affordable housing is locked in as affordable, reducing State fee financial barriers, and setting up a reliable pipeline for the future.

LGAQ chief executive Alison Smith

“First of all, we need both Labor and the LNP to have a plan to activate the hundreds of thousands of existing approvals.”

Ahead of the October election the LGAQ has been calling for Labor and the LNP to commit to fixing an infrastructure funding black hole to build roads, parks, and sewerage and water connections.

“Councils are calling for a review of existing state property fees, charges and duties to remove barriers to development and improve feasibility for Queenslanders to build and own homes,” Ms Smith said.

“A healthy pipeline of housing relies on collaboration between all tiers of government and the private sector.

The latest Australian Bureau of Statistics data shows building approvals in June fell 6.5 per cent nationally compared to the previous month, though the dip was largely caused by New South Wales and Victoria.

In Queensland a total of 32,982 dwellings were approved across the 2023-24 financial year, nearly equal to the 2019 low of 32,963.

Queensland’s best year for approvals in the last two decades was 2015-16 when a total of 51,991 dwellings were greenlit.