Australia is forecast to fall well short of a landmark national goal to build 1.2 million homes in five years as worker shortages and planning hurdles cut into house construction.
Building industry forecasts released on Tuesday estimated about 1.09 million new homes would be started in five years from July.
About half of the 112,000 shortfall is expected to come from NSW and South Australia,while only the ACT is predicted to meet its portion of the agreement.
The forecasts come after official data showed the production of high-density homes was in reverse,with commencements in 2022/23 falling to a 12-year low.
Master Builders Australia said falling inflation and interest rates would lead to a more favourable investment market and a building turnaround.
But government efforts to increase supply were being countered by supply-side constraints such as workforce shortages,industrial-relations changes and poor planning systems.
“Workforce shortages continue to be the biggest challenge for the industry across all sectors,” Master Builders Australia chief executive Denita Wawn said.
“At a federal level,the government’s priority should be growing the building and construction workforce.”
AAP