Master Builders says fresh Australian Bureau of Statistics data showing new home building approvals nearing a two-year high is good news, but much more improvement is still needed to build the homes Australians desperately need.

The ABS data released today shows that new home building approvals rose by 4.2 per cent during October 2024, the highest it has been since December 2022.

Growth was driven by a 22.4 per cent gain for higher density approvals - a 17-month high - however, there was a 5 per cent reduction in the number of approvals for new detached dwellings.

169,400 new homes have received approval in the past 12 months, a rate that would see just 847,000 new homes built over the next five years, 353,000 short of the National Housing Accord target.

A shortage of housing impacts all Australians, with rents increasing on the year to October 2024 by 6.7 per cent.

Quotes attributable to Master Builders Australia’s Chief Economist Shane Garrett:

“New home building has clearly won momentum, but we need to see much more improvement or there is little hope of reaching our Accord’s target of 1.2 million new homes by July 2029.

“Failing to deliver the much-needed homes is having a real cost on Australians. The year to October 2024 saw rents increase by another 6.7 per cent on already onerous levels.

“This is a direct result of years of underbuilding of new apartments and units.”

Quotes attributable to Master Builders Australia’s CEO Denita Wawn:

“This is a promising increase and a step in the right direction, but we are a long way off the pace needed to build 1.2 million new homes in less than five years.

“The increase is good, but we’re not there yet. We need to see this level of output increased and sustained over a longer period of time.

“Australians are struggling with inflation and the rising cost of living, we need to see genuine action on housing that will bring down those stresses.

“Last week saw the passage of crucial Help to Buy and Build to Rent legislation but there’s still a long way to go and more policy reform is needed.

“To get the policy settings right and create an environment where the building and construction industry can get the job done, we need governments at all levels, across a range of portfolios, working together in a “whole-of-government” approach to housing.

“Only a collaborative effort on housing will get Australians the cost-of-living relief they need.”