As the Accord hits its two-year mark, the next 12 months represent the government's last clear window of opportunity to make the policy changes needed to unlock new housing supply by its own deadline.
Property Council Group Executive Policy and Advocacy Matthew Kandelaars said the focus must now shift to delivery.
"We need a relentless focus on supply, especially the type that delivers new homes at scale. Anything less than the true reform needed to unlock supply will lock in years of under delivery when Australians can least afford it," Mr Kandelaars said.
"There are changes governments can make right now. Fix regulatory settings like RG-97 to support investment and capital flows and fix how dwellings are defined so that every home is properly counted under the Accord to help projects get moving."
New data released today by the Australian Bureau of Statistics shows building approvals for the month of May fell 1.1 per cent to 17,019. While approvals for private sector houses rose 2.8 per cent to 10,537, this was offset by a 10.4 per cent drop in higher-density dwellings to 6,034.
Mr Kandelaars said the latest approvals data highlights the pressure already facing the development pipeline, with the real test now shifting to project delivery.
"These changes come as the development pipeline is already under strain, and they risk weakening the investment needed to deliver new homes," he said.
"According to the Government's own numbers, these changes are expected to reduce housing supply by around 35,000 homes."
At the same time, the property sector already pays $130 billion in taxes each year, with close to 40 per cent of the cost of a new home made up of taxes and charges.
Mr Kandelaars said the combined impact of rising construction costs, labour shortages, the cost of capital and recent tax changes was tightening investment conditions across the market.
"This is a supply problem. When you make it harder to invest, fewer projects proceed and that means fewer homes."
He said this week's milestone for the National Housing Accord should serve as a clear call to action for governments.
"Governments cannot wait. They need to act now to remove barriers, support investment and get projects moving."
"The alternative is falling short of housing targets and allowing affordability pressures to deepen."
