Meeting housing targets could lead to savings for renters: study

With the Federal Budget release just a week away, a new report from Mandala Partners, commissioned by the Property Council of Australia, highlighted a pressing issue: Australia is on track to miss its 2029 housing target by 462,000 homes.

This deficit poses a severe challenge to the housing sector, threatening to intensify current affordability issues.

Potential for rent relief

However, the study also brings a silver lining for the nation’s renters. Achieving the target could mean an average weekly savings of $90 for renters, accumulating to a substantial annual saving of $4,680.

Such savings could bring significant economic relief to over 7 million renters nationwide, totaling an impressive $253 million in weekly savings.

Striving to meet housing targets

In response to these findings, the Property Council has advocated for doubling the New Homes Bonus—a $3 billion incentive program aimed at encouraging regions to exceed their housing targets.

“2025 is the year for Australia to redouble our housing supply efforts with the urgency and commitment this crisis demands,” said Mike Zorbas (pictured), CEO of the Property Council.

Zorbas emphasised the necessity of meeting the housing targets to avoid setting off “a housing affordability time bomb.”

State-specific challenges and solutions

The report detailed the disparities in housing deficits across states:

• New South Wales faces the steepest shortfall at 185,000 homes, with potential rent reductions up to $130 weekly.
• Queensland and Victoria show possible weekly savings of $80 and $50 respectively, should their housing gaps be closed.
• Western Australia and South Australia could see weekly rent reductions of $100 and $70 by meeting their respective targets.

A push for government action

To fortify efforts in meeting these ambitious goals, the Property Council recommends extending the New Homes Bonus scheme to seven years with increased funding of up to $6 billion.

These adjustments aim to facilitate long-term planning and ensure sufficient housing supply.

Public transparency and accountability are also highlighted as key components to track progress and foster best practices nationally.

Economic benefits of housing supply

Addressing the housing shortfall is not only crucial for rental affordability but also represents a potential boost to the economy.

Constructing an additional 462,000 homes could inject $128bn into the economy and support approximately 368,000 jobs annually until 2029.

Furthermore, strategic supply increases could stabilise housing prices, making homes more accessible and affordable across the country.

See the Property Council media release and report via LinkedIn.