Are we on track to build 1.2m homes? Some states have quietly surged ahead

New national data reveals how Australia is tracking against its ambitious housing target — and why progress is improving in some states faster than others. 

Under the National Housing Accord, all levels of government agreed to a shared target of delivering 1.2 million new homes over five years to June 2029.  

First launched on 1 July 2024, the target was split across states and territories based on population, meaning progress is being measured not just nationally, but within each jurisdiction as well. 

Since the Accord was announced, there has been no shortage of analysis assessing how Australia is performing.  

Over the past year, industry bodies and property groups have released their own assessments of whether the first year of delivery was keeping pace. 

Last week, however, the most official snapshot to date arrived, with the National Housing Supply and Affordability Council releasing its first quarterly report specifically tracking progress against the Accord. 

The Council is a statutory body established under the National Housing Supply and Affordability Council Act 2023. It advises the housing minister on national policy and provides analysis on supply, affordability and how the housing system is functioning. 

The data shows early momentum is emerging but also shows how far Australia still has to go and the varying timelines states face in meeting their Accord targets. 

Nationally, building approvals and commencements are both up 17% since the Accord began. Over the five quarters since the target came into effect, more than 219,000 new homes have been completed. 

Construction conditions have also improved. New homes are being built around 10% faster than last year, while real construction costs are now slightly lower than when the Accord started, after adjusting for inflation. 

Taken together, the data suggests Australia is moving in the right direction — but progress remains uneven, and the pace still falls short of what’s required to comfortably meet the 2029 deadline. 

Where progress is strong and where it’s lagging 

While national figures point to improvement, the report makes clear that housing delivery is tracking very differently across states and territories. 

Western Australia, Victoria and the ACT are among the stronger performers so far, with relatively solid shares of approvals and completions compared with their portions of the Accord target.  

These jurisdictions are also among those expected to reach their targets closer to the original 2029 timeframe. 

New South Wales, despite leading the nation in absolute housing volumes, remains behind its longer‑term trajectory when measured against its share of the national target.  

This reflects both the state’s population size and the scale of underlying housing demand, particularly in Greater Sydney. 

At the other end of the spectrum, Tasmania and the Northern Territory face significantly longer timelines. Based on current trends, both are projected to reach their targets several years after 2029 unless conditions improve. 

Reform doing the heavy lifting 

One of the clearest messages from the Council’s report is that housing delivery is strongest where planning systems are simpler and higher‑density housing is actively encouraged. 

In NSW, reforms have focused on building more homes near transport. The state’s Transport Oriented Development (TOD) program has rezoned land within walking distance of major train stations to allow greater density. 

NSW has also introduced initiatives such as its Pattern Book, which provides standardised, pre‑approved designs for low‑ and mid‑rise housing.  

Victoria’s reforms similarly concentrate density in well‑connected locations. New planning controls around activity centres near Melbourne’s train and tram hubs support taller buildings close to stations, with lower‑rise housing further out. 

Alongside this, the state has announced a series of codes to cut approval times for smaller projects, such as the Townhouse and Low-rise Code and Single Home Code.  

In South Australia, recent reforms have focused on improving affordability while supporting new supply. Measures aimed at first‑home buyers and rent‑to‑buy pathways are designed to help households move into newly built homes while also underpinning construction activity. 

Queensland’s emphasis has been on infrastructure, with the Residential Activation Fund investing in essential services to unlock housing‑ready land in high‑growth areas. 

In Western Australia, rezoning around train stations is enabling higher‑density housing near existing rail infrastructure, supporting new supply in well‑connected locations. 

The ACT has taken a similar approach through its “missing middle” reforms, expanding the range of housing types allowed in established suburbs to gradually increase supply without relying solely on high‑rise development. 

Are you interested in the latest in buying and building new? Check out our New Homes section.