Australia is facing a growing housing crisis. Migration is at a record high. Rents are rising. Home prices are surging again. You might be wondering: why aren’t we just building more homes?
In this blog, we break it down in everyday language. We use the latest stats. We also share real experiences from Aussies online.
Q: Didn’t the government say we’d build 1.2 million homes by 2029?
Yes, that’s the target. But the reality isn’t matching the goal.
In the first quarter of 2025, only 43,500 homes were completed across the country. To stay on track, we need to build at least 60,000 each quarter. That means we’re already about 260,000 homes short of where we should be. And the gap is growing every month.
Q: What’s slowing things down?
It’s not just one thing. Here’s what’s making it hard to build enough homes:
- Planning red tape: Getting approvals for new developments can take years.
- Builder shortages: There aren’t enough tradies to get the work done.
- Material costs: Prices for building supplies are still high after the pandemic.
- Developer risk: When costs go up, some projects just aren’t worth the risk.
Even big cities like Sydney and Brisbane are struggling to meet their own local targets.
Q: How does this affect renters and buyers?
Less housing means more competition for every property.
If you’re renting:
- Vacancy rates are under 1.3% in many areas.
- Rent has gone up 34% in just the last three years.
- Some renters say they’ve paid $10,000+ more in annual rent since 2020.
If you’re buying:
- First-home buyers are struggling to break into the market.
- Rising interest rates might have eased slightly, but prices keep rising too.
One Reddit user in WA said:
“We’re a full-time working couple and still can’t get approved for anything. It feels like we’re being pushed out for good.”
Q: Is migration the problem?
Not exactly. Migration brings workers, students, and new energy to the country — but it also increases demand for housing. In the last 12 months alone, more than 246,000 new people moved to Australia.
But the real issue is that our housing construction hasn’t kept up with population growth for years.
A Reddit commentor put it like this:
“We’ve known migration was rising for over a decade, but still no real increase in housing. Now it’s a mess.”
Q: What can actually fix this?
Experts suggest a few key changes:
- Streamline planning approvals
- Incentivise build-to-rent and medium-density projects
- Fix builder shortages with better training and immigration support
But these things take time. And right now, everyday Aussies are the ones feeling the pressure.
Q: What can I do if I’m stuck in the middle of it?
While CMHP doesn’t offer financial advice, we can help you get a clearer view of your local market.
Our House Price Reports give you:
- Up-to-date suburb insights
- Recent sales activity
- What’s happening with buyer interest in your area
When prices are high and stock is low, knowledge is power.
If you’re curious about your area, check your free report now.
Final Thought: This crisis isn’t just about numbers — it’s about people. Families delaying life milestones. Renters squeezed out. Buyers giving up.
We can’t solve it all today. We can start making sense of a complex problem by staying informed. Sharing real stories and pushing for smarter housing policies also help us. Let’s do it together.
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