Property Council Group Executive Policy and Advocacy, Matthew Kandelaars, said the welcome improvement in ABS Building Approvals data released today was a step in the right direction, but not enough to meet the scale of the housing challenge.
"This uptick is welcome but we're a long way from mission accomplished. The number of new homes being approved is trending in the right direction but still below where it needs to be," Mr Kandelaars said.
"What is clear at the one-year anniversary of the national housing target is that, without them, we'd be in a far worse position."
"To hit the Accord's 1.2 million homes target by mid-2029, we need to be approving at least 20,000 new homes every month and we're still falling short of that mark."
The total number of approved homes increased by 3.2 per cent in May to 15,212, according to seasonally adjusted data released today by the Australian Bureau of Statistics (ABS).
Mr Kandelaars said the data should sharpen the national focus on delivery, not dampen it.
"Today's numbers confirm what we've long known - we don't just have a housing crisis, we have a productivity problem," Mr Kandelaars said
"As the Treasurer rightly plots a course to lift national productivity, we must remember that when building slows, the whole economy feels it. Productivity in property means productivity for the nation. We're building homes half as fast as we were 30 years ago. That must change."
Mr Kandelaars said that while last month's rise in approvals suggest some progress, the broader system remains weighed down by delays, cost pressures and policy roadblocks.
"We're still seeing too many viable projects stalled by red tape, slow planning and environmental approvals, and high development costs," Mr Kandelaars said.
"Housing markets across the country need more certainty. That means better investment settings, faster utility connections, and a ramp-up in skilled workers from home and abroad."
Mr Kandelaars said apartment approvals saw significant uplift last month in original terms but remained off the pace needed to meet demand with 3,557 apartments approved in May, up from the 2,539 approved in April.
"These should be the workhorses of urban housing supply but instead, apartments are stuck in the slow lane across too many states," he said.
