17 Sep
Each month on the Behind the Numbers podcast, I speak with property experts about the trends shaping Australian housing. This month, Cameron Kusher shares the latest dwelling approvals data – and why the federal government’s Housing Accord target is still a long way off.
July 2025 saw 15,769 dwelling approvals nationally – down 8.2% from June but up 6.6% over the year.
- Houses: 9,429 approvals (+0.6% month, +0.7% year)
- Other dwellings (units, townhouses, etc.): 6,340 approvals (-18.8% month, +16.9% year)
While approvals fluctuate month-to-month, the broader trend is encouraging: house approvals have consistently outpaced units, and overall volumes are rising. Over the 12 months to July 2025:
- 188,727 dwellings approved nationally (+13.4% year, highest annual volume since Jan 2023)
- 112,763 new houses (+5.3% year)
- 75,965 other dwellings (+28.1% year)
But despite this upward trend, volumes remain well below the level needed to meet the Housing Accord target.
The Housing Accord (a federal budget target) aims to deliver 1.2 million new homes between July 2024 and June 2029, that’s around 20,000 approvals per month for five years. Given the target has never been achieved before, and a minimum of 1.2 million homes need to be sought for this to be achieved, it is going to be a challenge, and perhaps an unrealistic goal.
As the graph below shows, actual approvals consistently fall short of the minimum target:
- In the first 13 months, only 203,516 dwellings were approved – a shortfall of 56,484 against the target.
- Not a single month has seen 20,000 approvals; the closest was June 2025, with 17,185 approvals.
Even as interest rates ease and construction costs stabilise, the current pace is unlikely to meet the Accord’s goals. The type of housing also matters:
- Houses and medium-density developments are quicker and cheaper to build than high-density apartments.
- Most approvals are now skewed toward houses, which is a positive trend – but overall volumes are still insufficient.
The country urgently needs more housing delivered quickly, affordably, and in the types Australians want to live in. Current policy levers prioritise high-density inner-city housing, which:
- Takes longer to finance and construct
- Costs more than single houses or townhouses
- Delays supply reaching the market
A more effective approach would focus on greenfield and “missing middle” medium-density developments to speed delivery and reduce costs.
- Governments should also:
- Streamline approval processes
- Remove barriers slowing construction
- Encourage new housing supply rather than measures that push up demand for existing housing
While approvals are rising, without a laser focus on speed, cost, and the right housing types, the Housing Accord target remains out of reach.
Leaders in property and policy need to look beyond headline numbers and consider how housing delivery can be accelerated and made more affordable.
Stay in the know with the latest insights on Behind the Numbers – where we unpack the data shaping the Australian property market.
Until next time,
Stay connected.
Sadhana Smiles
CEO, Real Estate Industry Partners
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