The Australian housing sector has reached a critical point, with the number of new home builds in 2023-24 falling by 8.8% to just 158,690 starts – the lowest in more than 10 years, according to Master Builders.
Detached house commencements dropped by 10.1%, while higher-density projects fell by 6%.
“If building continues at this pace, we’ll be in for less than 800,000 new home starts over the next five years,” said Shane Garrett (pictured above left), chief economist at Master Builders Australia.
Master Builders Australia cautioned that this sluggish building rate could lead to a major housing shortage.
“This would mean a shortfall of over 400,000 homes compared with the National Housing Accord target,” Garrett said.
Without immediate action, Australia risks deepening its already severe housing crisis.
Adding to the concern is the sharp decline in apprenticeship numbers, revealed in a report by the National Centre for Vocational Education Research.
From March 2023 to March 2024, apprenticeship completions fell by 8.6%, while new apprenticeship commencements dropped by 11.8%. The number of apprentices in training also saw a slight decline of 2.2%. These numbers underline a growing shortage of skilled workers in the construction sector.
Denita Wawn (pictured right), CEO of Master Builders Australia, highlighted the link between the drop in apprenticeships and the broader housing crisis.
The “data releases aren’t unrelated,” Wawn said. “To bring Australia out of the housing crisis we need to drastically increase the supply of housing.”
She stressed that the labour shortage is a key barrier: “We can’t do that while we’re simultaneously suffering through a labour shortage.”
The Master Builders Australia is urging the government to take swift action to address the shortage of tradespeople.
“Low apprentice numbers reflect a shortage of skilled workers across all trades,” Wawn said. “It’s no longer appropriate to call for a return to pre-COVID levels, we need more tradies now than we’ve ever had.”
She called for policies to increase the number of apprentices and skilled workers in the industry, adding, “We urgently need governments to look at solutions to increase the number of tradies, increase the number of apprentices, and help Australian builders increase supply so we can come out the other side of this housing crisis.”
Master Builders Australia has published a report, Future of the Workforce: Building and Construction Industry, which outlines the urgent need to expand the workforce. This report stresses that without an influx of new tradespeople, Australia’s housing crisis will continue to worsen. To access the full report, click here.
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