“Simply put, housing is one of Australia’s biggest issues, and one of our biggest opportunities,” said Andrew Irvine, NAB Group CEO. “We need innovation in both housing design and construction to make meaningful progress.”
With rising property values, limited supply, and affordability pressures, solutions require coordinated efforts from governments, developers, and financial institutions.
In response, NAB has stepped forward with a goal to deliver $6 billion in funding by 2029 for social, affordable, and specialist housing projects.
NAB has highlighted the importance of collaboration across all sectors to boost housing supply. The bank is investing in solutions such as modular housing and build-to-rent developments to address critical housing shortages.
As part of the effort, Julie Rynski, NAB’s affordable housing council chair, urged governments to fast-track land development approvals and implement innovative financing options for non-profit housing providers. With interest rates high and construction slowing, affordable housing projects are becoming increasingly difficult to launch.
“More urgent action is needed to boost housing supply and ease affordability pressures,” Rynski said. “Tailored financing solutions and streamlined approvals can ensure essential workers and low-income earners have better access to housing.”
To support the growing need, NAB aims to finance projects focused on specialist disability accommodation and social housing initiatives. The bank is aligning its strategy with government-backed schemes to ensure that funding reaches where it’s needed most.
Despite some improvements in property market conditions, challenges persist in the construction sector.
Mark Browning (pictured above left), NAB’s head of valuations and property advisory, highlighted that supply chain issues, elevated material costs, and labour shortages are slowing down new housing developments.
“The ambitious target of 1.2 million new homes by 2029 is encouraging, but it will require sustained focus and cooperation to succeed,” Browning said.
The ABS data showed that approvals for new dwellings have dropped 6.1% nationally, with unit approvals falling 17.5% in August alone. Although house approvals have seen slight recovery, they remain 5.3% below the decade average, reflecting the continued strain on the sector.
With rising borrowing costs, more buyers are opting for smaller dwellings like townhouses or apartments or choosing to live further from city centers.
Meanwhile, rental vacancy rates have increased slightly, easing some pressure on the market but not enough to reverse the affordability crisis.
“Even as market conditions improve, affordability remains a major challenge for many Australians,” Browning said. He emphasised that ongoing planning reforms, such as stamp duty relief and higher density developments near public transport, are essential for long-term solutions.
Eliza Owen (pictured above right), head of residential research at CoreLogic, warned that Australia’s pipeline of new housing is dwindling, creating a potential vacuum in future supply. While 251,000 dwellings remain under construction, the number of new approvals is 30% below the levels needed to meet government targets.
Owen also pointed out that high-density unit construction – a key driver of affordable housing – has slowed significantly, with apartment projects taking over two years to complete.
“Streamlining planning and reducing construction delays is critical to avoid further setbacks in housing supply,” Owen said.
NAB’s leadership is calling for long-term solutions to the housing crisis, focusing on policies that increase supply and address affordability through sustainable development.
“We need to move with urgency and focus, using every tool available to solve the crisis,” Irvine said.
With NAB’s commitment to backing large-scale projects, such as modular housing and build-to-rent initiatives, the bank aims to ensure that affordable and specialist housing remains a priority.
“Helping Australians buy a home is a significant part of what NAB does, and we want to do more to provide safe and affordable homes for all,” said Rynski.
The Australian housing challenge will require continued reform, innovation, and coordinated efforts from all sectors. NAB’s $6bn commitment by 2029 is a crucial step, but the work is far from over.
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