The total number of approved homes fell by 8.2 per cent in July to 15,769 according to seasonally adjusted data released today by the Australian Bureau of Statistics. This is after rising 12.2 per cent in June.
This drop was driven by a decline in the number of apartment and townhouse approvals.
Private sector dwellings excluding houses (which include semi-detached, row or terrace houses, townhouses and apartments) fell 22.3 per cent to 5,943 dwellings. This followed a 33.5 per cent rise in June, which was the highest result since December 2022.
Meanwhile, approvals for single-family homes rose by 1.1 per cent in July. The result is 0.3 per cent higher than one year ago.
Australia must approve over 20,000 homes each month to reach our target of 1.2 million new homes by 2029.
Property Council Group Executive Policy and Advocacy Matthew Kandelaars said now is the time to ramp up our efforts to hit our housing targets.
"The National Housing Accord has energised states and territories across the country to address planning and zoning reforms, exactly as was intended," Mr Kandelaars said.
"It is heartening to see a concerted effort across the country to hit our housing targets, but today's data shows that increased approvals across a single month or two won't be enough.
"Progress is being made, but the supply pipeline remains constrained, as these numbers show.
"Apartment approvals can be volatile, but it is still disappointing to see a significant drop over the month.
"Despite this, we have seen welcomed growth. Overall home approvals are up 6.6 per cent from the same time last year, while private sector dwellings excluding houses approvals rose 12.5 per cent.
"A mix of elevated construction costs, shortages of labour, complex approval processes, punitive state taxes and low productivity on construction sites is putting strain on the industry's ability to deliver housing.
"We must also ensure all housing types are counted towards our 1.2 million new homes target. This means every form of housing – student accommodation, land lease and retirement living - is in supply targets.
"Without recognition, states have little incentive to zone for and deliver innovative, high-density housing, despite the fact that these options provide essential new homes and free up thousands more for Australians at all stages of life."
