The report details Australia’s current housing demand, supply and affordability conditions, and the expectations for these over the coming years. It makes 15 policy recommendations in five key policy areas. Prioritising these policy reforms will improve outcomes across the housing system. 

Structural constraints are the principal barrier to supply. There continues to be an inadequate pipeline of skilled workers; low rates of productivity and innovation in the construction sector; and restrictive and complex land use and planning approval systems in some jurisdictions.

Systemic reform and ongoing investment from government and industry are urgently needed to ensure that housing in Australia is affordable, fit for purpose and secure for households of all incomes and in all locations.

Key findings

• Housing affordability continued to deteriorate in 2024, with worsening trends across most capital cities and regional areas.
• Housing prices and rents increased to record‑high levels, as new housing supply continued to fall short of demand.
• The supply of new housing is near its lowest level in a decade.
• Expected new housing supply will be insufficient to meaningfully improve housing affordability for all households.
• Labour shortages, high material costs and elevated interest rates have reduced project feasibility, limiting new housing supply.