AUSTRALIA is almost 95,000 homes behind its National Housing Accord target after two years, with the Housing Industry Association estimating the shortfall represents $45 billion in unrealised economic activity and $11 billion in potential tax revenue.
Drawing on Australian Bureau of Statistics building activity data, HIA said new home commencements were 94,980 dwellings below the pace required to meet the accord’s target of 1.2 million homes, leaving a gap it estimates could have accommodated 242,160 Australians.
HIA Managing Director Jocelyn Martin said the consequences extended beyond the shortage of places to live, with fewer homes being built also limiting construction jobs, economic activity and government revenue available to support community services.
“Based on new home commencements for the first two years of the Housing Accord, Australia is now 94,980 dwellings behind the target,” Ms Martin said. “Not only does this equate to a significant shortfall in meeting the new homes target, but it also represents $45 billion in economic activity that the building shortfall would have generated had it occurred.”
HIA estimates that meeting the housing targets over the two-year period could have generated an additional $2.8 billion in stamp duty and $8.2 billion in GST, based on the construction shortfall and relevant state and territory taxation arrangements.
The association said that combined revenue could have funded the equivalent of 43,455 essential workers across Australia over the two years, highlighting the connection between housing delivery and governments’ capacity to fund services.
Ms Martin said the estimates strengthened the case for governments to encourage more construction.
