A fierce political row has broken out following damning new statistics that show the government's flagship housing policy is already falling drastically short of its ambitious target.
Approvals Slump Puts Target in Jeopardy
According to the latest data from the Australian Bureau of Statistics, the total number of dwelling approvals fell by 6.4 per cent in October to just 15,832. This decline was primarily driven by a sharp 13.1 per cent drop in approvals for private dwellings excluding houses, such as apartments and townhouses. Approvals for private sector houses also fell, by 2.1 per cent to 9,251.
These figures paint a bleak picture for the government's pledge to build 1.2 million well-located homes by mid-2029. Analysts calculate that the current trajectory leaves the administration approximately 70,000 homes behind schedule, casting serious doubt on the viability of the target.
Sunrise Showdown: Minister Defends, Opposition Attacks
The alarming data sparked a tense televised debate on Channel Seven's Sunrise programme between Housing Minister Clare O'Neil and Nationals leader Bridget McKenzie. Ms O'Neil sought to defend the government's record, urging viewers to look at the "big picture" of a decades-long housing issue.
"Our government is stepping up to relieve that pressure on Australians," she told host Nat Barr. "What those numbers showed us yesterday is that home commencements are significantly up on where they were a year ago and that's good news."
Her defence was met with visible scepticism from Senator McKenzie, who labelled the situation a "monumental failure". She argued that housing affordability is moving in the wrong direction, with rising rents and property prices. "And, because of your own self-created inflation problem, mortgage rates are being held higher for longer than they need to be," she accused. "So on any measure, on the supply side, it's a fail."
The debate grew heated, with Ms O'Neil interjecting to tell the senator "That's not right" and accusing her of inventing figures.
Broader Market Pressures and Industry Warning
The political sparring comes against a backdrop of severe challenges in the construction sector. Denita Wawn, CEO of Master Builders Australia, issued a stark warning, stating that approvals are sliding due to a "clear gap between policy ambition and reality".
"Builders are struggling to make the numbers work," Ms Wawn said. "Construction costs have jumped more than 40 per cent since 2019, and rising finance and insurance costs are pushing too many projects off the table." She cautioned that without urgent action to ease pressures, more projects will stall before they even begin.
The data revealed a mixed picture across states, with most seeing falls in private sector house approvals. Victoria experienced the largest decline at 6.6 per cent, while Queensland was the exception with a 2.7 per cent rise.
Questions were also raised about the government's First Home Guarantee scheme, which allows purchases with a five per cent deposit. While Treasury modelling suggested it would lift property prices by only 0.5 per cent over six years, the CoreLogic Home Value Index showed national dwelling values jumped 1.1 per cent in October alone—the fastest monthly rise in over two years. In the scheme's first month, 5,778 properties were purchased at a median price of $710,000.
