Victoria set to fall 71,000 homes short of Albanese government’s housing targets

Australia is projected to fall almost half a million homes short of the Albanese government’s housing target, meaning renters will pay the price.

Victoria is on track to fall 71,000 homes short of the national housing targets, with new data showing a failure to deliver could result in renters missing out on $50 in weekly savings.

New data from Australia’s peak property body has revealed the Albanese government’s centrepiece housing policy is set for a shortfall of almost half a million homes.

The in-depth research, released by the Property Council of Australia on Tuesday ahead of the federal budget, shows the country is projected to fall 462,000 homes short of the target of 1.2 million new homes in well-located areas by 2029, as part of the National Housing Accord.

Victoria is on track to build just 237,000 out of the 308,000 homes – or 77 per cent – required under the targets.

Closing the 71,000-home shortfall, however, could cut rents in well-serviced areas by up to $50 a week, the data shows.

Victoria is projected to fall 71,000 short of the 1.2 million housing target. Picture: Sarah Matray

In New South Wales, a forecast gap of 185,000 homes could be the difference between $130 per week in potential savings, while in Queensland plugging a projected shortfall of 96,000 homes could save up to $80 per week for renters.

The Property Council is calling for the $3 billion New Homes Bonus reward program, which provides performance-based funding for states and territories who achieve more than their targets, to be doubled.

Property Council chief executive Mike Zorbas said the country needed to “redouble” its efforts to achieve the ambitious goal.

“Missing the target by 462,000 new homes by July 2029 would set off a housing affordability time bomb,” he said.

“Thankfully, we can avoid this.”

Mr Zorbas said the scheme should be extended to seven years with upfront payments to support the long-term reforms.

The Albanese government planned to build 1.2 million new homes in five years. Picture: Nadir Kinani

“It’s value should increase to $6 billion, with unspent funds reserved for future housing initiatives,” he said.

“That increase would be just 0.1 per cent of the Australian Government’s 2024/25 Budget.”

With government taxes swallowing three in ten dollars spent on a new home, Mr Zorbas said any federal boost would “need to be matched by changes to gouging state and territory tax regimes and planning systems to support the delivery of new homes”.

According to the research, more than seven million renters across the country would collectively save $253 million each and every week if the housing targets are reached.

Currently, the ACT is the only jurisdiction projected to reach its target.

It comes just weeks after the Allan government revealed its final housing targets for councils and new planning reforms, including a fast-tracked planning permit for apartments and townhouses, as part of its next steps to rolling out 2.24 million new homes by 2051.

Property Council chief executive Mike Zorbas has said the scheme should be extended by two years. Picture: Supplied

The new Mandala Partners report found that constructing the 462,000 additional homes as part of the National Housing Accord would contribute $128 billion in economic activity and support 368,000 jobs.

Victorian Property Council executive director Cath Evans said the state’s “costly and investment-repelling taxes are creating fundamental structural issues” in the sector and limiting the state’s housing supply.

“Without targeted tax incentives to close the development feasibility gap, Victoria will fail to attract the investment we need to deliver more homes,” she said.

“The Property Council is calling for tax relief in the upcoming May State Budget, and increased momentum and co-operation from all levels of government to reverse Victoria’s housing shortfall.”