‘Ambitious’: Jim Chalmers backs Labor’s 1.2 million housing target
Treasurer Jim Chalmers has made a big call on Labor’s approach to housing affordability and its goal to build 1.2m homes by 2029.
Treasurer Jim Chalmers has backed Labor’s “ambitious yet achievable” housing target, despite national data showing the government is tracking 70,000 homes short of meeting its goal.
Data from the Australian Bureau of Statistics revealed dwelling approvals fell by 6.4 per cent in October, with separate figures showing the value of existing residential properties soared by $317bn in the September quarter.
Labor’s National Housing Accord has set out a goal to build 1.2 million new, well‑located homes by July 2029.
The ABS figures show the government is now more than 70,000 homes behind its target, as house prices continue to soar and exacerbate the affordability crisis.
“Look, we’ve acknowledged as a government that we need to build more homes,” Mr Chalmers told reporters in Brisbane.
“That’s the whole reason why we’ve got this ambitious but achievable housing target for 2029.
“It’s why we’re throwing so much time and energy and resources into building the homes that Australians desperately need, because we recognise that this is one of the defining challenges in our economy.”
He reiterated the target was “ambitious”, but said it could be attained if all stakeholders played their part.
“Now that target is ambitious, but it is achievable if everybody does their bit, and the Commonwealth is doing its bit.
“$43 billion in investment, working with the states, with local governments, working with the industry, working with investors, providing all kinds of different ways that we’re encouraging the building of more properties in our local communities.”
McKenzie erupts over housing
Earlier, Nationals senator Bridget McKenzie launched a blistering attack on Labor’s housing approach.
On Seven’s Sunrise, Senator McKenzie lashed Labor for trying to defend the figures.
“70,000 shortfall is a monumental fail,” she said.
“Housing affordability – the critical issue across our economy – is going in the wrong direction.
“Rents are up, prices are up if you’re trying to get into the market and – because of your own self-created inflation problem – mortgage rates are being held higher for longer than they need to be.
“So on any measure, on the supply side, it’s a fail.”
Senator McKenzie then attempted to link material supply issues to inflation, before being interrupted by Housing Minister Clare O’Neil who said: “That’s not right. You can’t just make it up”.
Earlier, Ms O’Neil had been grilled by Sunrise host Nat Barr on the figures and asked if the data was a “bad sign” for the government.
“Well, Nat, actually, that’s not what the figures that came out really said to us.
“So just big picture – we’ve got a really significant issue in our housing that’s been going on for many decades now, and our government is stepping up and trying to do everything we can to relieve that pressure on Australians.
“What those numbers showed us yesterday is actually home commencements are significantly up on where they were a year ago, and that’s good news. So we are starting to see some really important green shoots on housing.
“You’ll remember, our government’s building massive amounts of social and affordable housing, which is desperately needed.
“We’re helping lots of renters around the country, and we’re seeing lots more first home buyers in the market.
“But we’ve got a long way to go here, and it’s a diligent job that’s going to require lots of effort over many years.”
Labor has pushed to create more affordable housing through its $10bn Housing Australia Future Fund, having built more than 5,000 social and affordable homes with Commonwealth investment since 2022.
It has also introduced the Help to Buy scheme which will take effect on December 5, to help first home buyers enter the market.
Those eligible for the scheme will be able to co-purchase a property with the government, which will foot up to 40 per cent of the purchase price for new homes, or 30 per cent for existing homes.
Originally published as ‘Ambitious’: Jim Chalmers backs Labor’s 1.2 million housing target
