September 20 2023
"Construction is expected to get a boost with different states and territories expected to do their share to meet the 1.2 million housing target." - Miguel Nitorreda, Data Analyst
The 1 million homes that Australia had committed to during last year’s housing accord was already an ambitious target in terms of finding the resources needed to rev up construction to the required level – though housing experts noted it was still shy of what was needed to address the country’s housing shortage.
After the most recent meeting of the national cabinet, however, an even loftier goal has been set: to create 1.2 million “well-located homes over five years” beginning from 1 July 2024.
Housing industry experts pointed that while the goal is a big one, it’s achievable with the right resources and pathways to process development applications.
As an added incentive, the federal government has announced that it has set aside $3 billion to the “New Home Bonus” fund, which will reward states for each home they build over their share of the original 1 million target.
So what does this mean on a state or territory level? In the interests of providing clarity to help assist and inform the national debate over the new National Housing Accord targets agreed to by national cabinet, Urban Taskforce has released a breakdown of the housing targets by state/territory population share. The calculations are based on the Australian Bureau of Statistics’ national population dataset from December 2022.
NSW
Population (December 2022): 8,238,800
Per cent of national population: 31.37 per cent
Population-based share of 1.2 million homes: 376,439
Annual housing target to meet 1.2 million homes: 75,288
Victoria
Population (December 2022): 6,704,300
Per cent of national population: 25.53 per cent
Population-based share of 1.2 million homes: 306,326
Annual housing target to meet 1.2 million homes: 61,625
Queensland
Population (December 2022): 5,378,300
Per cent of national population: 20.48 per cent
Population-based share of 1.2 million homes: 245,740
Annual housing target to meet 1.2 million homes: 49,148
South Australia
Population (December 2022): 1,834,300
Per cent of national population: 6.98 per cent
Population-based share of 1.2 million homes: 83,811
Annual housing target to meet 1.2 million homes: 16,762
Western Australia
Population (December 2022): 2,825,200
Per cent of national population: 10.76 per cent
Population-based share of 1.2 million homes: 129,086
Annual housing target to meet 1.2 million homes: 25,817
Tasmania
Population (December 2022): 571,600
Per cent of national population: 2.18 per cent
Population-based share of 1.2 million homes: 26,117
Annual housing target to meet 1.2 million homes: 5,223
Northern Territory
Population (December 2022): 250,100
Per cent of national population: 0.95 per cent
Population-based share of 1.2 million homes: 11,427
Annual housing target to meet 1.2 million homes: 2,285
ACT
Population (December 2022): 460,900
Per cent of national population: 1.75 per cent
Population-based share of 1.2 million homes: 21,059
Annual housing target to meet 1.2 million homes: 4,212
Source: Smart Property Investment
Helmke, J. (2023, August 25). How many homes must each state build to meet the new 1.2m target? Smart Property Investment - By investors for investors. https://www.smartpropertyinvestment.com.au/research/25026-how-many-homes-must-each-state-build-to-meet-new-1-2m-target