Housing approvals still below 1.2 million-home target pace

Australia’s housing approval pipeline is improving, but it is still running below the pace implied by the National Housing Accord target of 1.2 million new homes over five years.

The latest ABS Building Approvals data show 18,365 dwellings were approved in trend terms in July 2026. That was up 0.8 per cent over the month and 11.7 per cent over the year.

Annualised, the July trend rate is equivalent to around 220,000 dwelling approvals a year. The Housing Accord target, which runs from 1 July 2024 for five years, implies an average construction rate of 240,000 homes a year.

That leaves the current approval rate about 19,600 dwellings, or 8 per cent, below the annual pace implied by the target.

The seasonally adjusted figures were weaker again. Total dwelling approvals fell 3.6 per cent in July to 17,687, although this followed a strong 6.9 per cent rise in June. Because monthly approvals can be volatile, the trend series gives a better indication of the underlying pipeline.

There is an important qualification. Building approvals are not completed homes. The Accord target is for homes to be built, while an approval is the official permit allowing construction to begin.

But approvals are a leading indicator of future construction. If Australia is to lift completions towards 240,000 homes a year, the approval pipeline will need to move sustainably above its current level.

The latest figures show progress — but not yet a housing pipeline consistent with the national target.