The Federal Government is promising to build 1.2 million homes over five years as part of the National Planning Reform Blueprint, although it still faces some opposition from The Greens. Governments of all levels are looking for solutions to the housing crisis.
Building approvals have reached historic highs but there is a gap between approved homes and actual completions. Between June 2020 and 2021, more than 221,000 new homes were approved but only two-thirds of these were built, as labour and materials shortages affected the industry. While Governments are looking for solutions some analysts believe it will be difficult for private sector builders to ramp up production. The private sector produces about 98% of new builds, but it is facing its own challenges, with a number of major builders going broke in the past year. Analysts say more focus needs to be put on how state and local governments bring more land for new and affordable housing to the market.