Coalition claims Labor’s housing fund has built zero homes. Wrong. Here’s where they are

Thousands of affordable homes have been earmarked for the nation’s capital cities and regional centres, while hundreds more already have occupants, under a $10 billion program that the Coalition has signalled will end if it wins office at the upcoming federal election.

As supporters call for the Housing Australia Future Fund (HAFF) to be expanded rather than shut down, figures from the fund to be released on Wednesday will show 358 homes have been completed and another 5465 are under construction while planning is under way for 7833.

About 390 new dwellings are under construction at Eden Street and Princes Highway in Arncliffe.Credit: Nick Moir

The fund is a key part of the government’s efforts to address the nation’s housing crisis, an issue that is expected to dominate the election campaign. Labor has put in place $32 billion worth of programs, including funding for local councils to support new infrastructure, while setting a target of 1.2 million new homes being built by mid-2029.

The Coalition has promised $5 billion to councils to fast-track infrastructure it says will unlock up to 500,000 homes, while also allowing first-time buyers to access up to $50,000 from their superannuation to get into the property market.

It has criticised the housing fund, which supplies $500 million a year towards community and affordable housing, arguing that since its delayed creation it has not delivered a single home.

However, the HAFF data shows that while no buildings have been completed in Melbourne, 1061 are under construction, including projects in areas such as Brunswick, Box Hill and Maribyrnong.

In Sydney, 11 buildings have been finished, 2168 are at the planning stage and 785 are under construction – including 391 homes on a single site in the suburb of Arncliffe near Sydney airport.

In Perth, 221 have been built in outer suburbs such as Ellenbrook and Banksia Grove, 2032 are being planned, while 345 are under way.

Housing Minister Clare O’Neil, who was in the Adelaide suburb of Panorama to talk to the residents of 18 apartments built by Anglicare SA, said the figures showed the fund’s importance in providing affordable housing to thousands of Australians.

“By establishing the HAFF, the Commonwealth will steadily chip away at the shortage of social and affordable housing in Australia that is a result of neglect by previous governments,” she said in a statement.

The National Affordable Housing Alliance, a group whose membership includes ACOSS, the Property Council, Master Builders Australia and Homelessness Australia, said the HAFF should be extended.

“The HAFF is already delivering results and should be strengthened. With close to 1 million Australians projected to have their housing needs unmet by the private market by 2039, we cannot afford to abandon this vital initiative,” it said in a statement.

But the Coalition’s home ownership spokesman, Andrew Bragg, on Tuesday maintained nothing that had been built under the HAFF.

Bragg, who has criticised the program for supporting superannuation funds to sink money into housing, accused the government of overseeing a collapse in home construction since coming to office.

About 80 dwellings are under construction at Thomas Holmes Street in Maribyrnong.Credit: Chris Hopkins

“They announced 13,000 new houses in September 2024 but haven’t signed contracts for most of these houses, let alone put a shovel in the ground,” he said.

Housing Industry Association figures released on Tuesday suggest a turnaround in the construction sector through this year.

New home sales in January lifted by 4.1 per cent over December. The number of approvals for new houses has also picked up, lifting by 6.8 per cent through 2024 compared to 2023.

Approvals are down in both NSW and Victoria, with growth occurring across Queensland, South Australia and Western Australia.

“The rise in new home sales and new detached house approvals is consistent with expectations of an increase in the volume of homes commencing construction this year,” HIA economist Maurice Tapang said.

Last week’s cut in official interest rates is also expected to underpin a lift in home construction.

The ANZ-Roy Morgan weekly measure of consumer sentiment, released on Tuesday, showed a large lift in shopper confidence since the Reserve Bank sliced the official cash rate by a quarter of a percentage point.

Overall confidence lifted by 4.7 points, taking it to its highest point since May 2022, just before the Reserve Bank started lifting interest rates and the election of the Albanese government.

Confidence among mortgage holders jumped by 10.7 points, while among renters it lifted by four points.

While confidence lifted, expectations around inflation eased. Weekly inflation expectations fell by 0.7 percentage points to 4.2 per cent. A month ago, it was around 5.5 per cent.

Measures of current financial conditions increased by 7.5 points while expectations for future financial conditions jumped by 10 points.

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