Home building activity will need to increase to meet the federal government’s target to build 1 million new homes over five years from 2024, or an average of 200,000 per year.
According to new data from the Australia Bureau of Statistics (see graph):
* 188,765 approvals for new dwellings were issued in 2022
* 990,699 approvals were issued in the five years to 2022
The reason the government wants to build more homes is to improve housing affordability.
An increase in the housing supply would mean a decrease in demand, and therefore put downward pressure on prices.