The New South Wales government has admitted that it will not reach its housing target for 2024, and will not even commit to meeting its targets for future years.
Premier Chris Minns has admitted the government has “no chance” of meeting its first 12-month housing target as part of the National Housing Accord.
“We’ve been clear from the very beginning that 75,000 (new homes), from almost a standing start, would be difficult to accomplish in 12 months, but we want to see forward progress as in a major increase in the amount of development within NSW in a 12-month period,” he told media.
Minns refused to put a date on when the state would meet any of its targets, instead simply saying they would “build as many as we possibly can”.
The targets were announced by the Federal Government in its October 2022 mini Budget, which sought to build 1.2 million homes across Australia over five years from mid-2024. That included 75,000 homes in NSW this year.
The lack of housing nationwide has led to a surge in both housing and rental values. Coupled with a rise in interest rates, a 20% deposit would now take a decade to save up, economists have warned.
A recent ANZ Housing Affordability Report said building new homes was the key to solving the crisis.
“Looking ahead to 2024, housing affordability will likely be shaped by the trajectory of interest rates, potential shifts in housing demand and the state of the construction sector,” the report said.
“There is unlikely to be much relief in interest rate or home value declines, and improvement in affordability must come from deliberate efforts to increase housing supply.”
Based on current trends, Australia will build just 95,400 houses and 84,499 units in 2024.
Such numbers would make it the worst year for construction in the country in a decade, and far below the cabinet goal of 240,000 homes.
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