The Albanese government’s flagship National Housing Accord has reached its quarter-time mark with concerning performance gaps, as official data reveals Australia has fallen short of its housing targets by approximately 81,000 dwellings. Despite some progress in construction activity, the ambitious housing initiative continues to face significant challenges in meeting its objectives.
According to the latest Building Activity report from the Australian Bureau of Statistics, dwelling commencements experienced a 6.6% increase in September 2025, reaching 48,778 units. Private sector house commencements accounted for more than half of this growth, rising 6.9% to 28,845 units. However, the completion rates tell a different story, with finished private sector house dwellings declining by 5.1% compared to September 2024, totaling only 27,066 completions.
Urban Taskforce CEO Tom Forrest highlighted the concerning gap between targets and reality. “Under the National Housing Accord, the pro-rata new housing completions target for the first 15 months was 300,000,” Mr. Forrest stated. “Despite some improvement, the first 15 months saw only 218,974 new dwellings completed across Australia.”
The state-level analysis reveals mixed results. New South Wales, Australia’s most populous state, reported 47,198 commencements for the year ending September 2025—an increase of 4,186 from the previous year. However, the state completed only 55,557 new dwellings against an Accord target of 94,000 for the same period.
Mr. Forrest identified critical systemic challenges hindering progress, including insufficient federal support for housing-enabling infrastructure and excessive state-level taxation on housing projects, particularly in NSW. “Today’s ABS data is a timely reminder to federal officials that more support is needed for housing-related infrastructure and taxation reform,” he emphasized.
The Queensland government separately addressed construction productivity issues, with Home Ownership Minister David Janetzki attributing lagging housing construction to union deals under the previous administration. “The decade of declining construction productivity has reduced housing affordability and increased the cost of vital infrastructure projects,” Minister Janetzki stated.
As the National Housing Accord moves beyond its initial phase, stakeholders emphasize that planning approvals alone are insufficient without the necessary infrastructure funding and tax reforms to convert approvals into actual housing completions.