The National Housing Supply and Affordability Council's first quarterly report confirms progress but makes clear current delivery settings are insufficient. Approvals are up 9 per cent but building completions have fallen by 2 per cent over the past year.
Property Council Chief Executive Mike Zorbas said the data showed that housing targets improved state and territory approval performance, but post approval systems need radical uplift.
"We are approving more homes, but getting fewer out of the ground," Mr Zorbas said.
"With the latest construction supply cost spikes around 30 per cent and supply chain disruption, we need to pull all the government levers to keep housing supply pumping."
Mr Zorbas said performance continued to vary by jurisdiction, with New South Wales and the Northern Territory now lagging on building completions, despite NSW carrying the largest share of the national task.
Recent ABS data also underscored how fragile delivery remains. In the twelve months to September 2025, building completions in both Victoria and New South Wales went backwards.
Mr Zorbas warned international developments were already intensifying pressure across the construction sector.
"With conflict continuing in the Middle East, supply chain risks have landed on our doorstep," he said.
"Supply chain cost shocks flow straight into feasibility and delay projects that are already approved."
Mr Zorbas said the report shows that housing targets are realistic, current policy settings are still not strong enough to deliver them.
"Post permit approvals remain too slow, last mile infrastructure is not keeping pace, and our housing definitions are too narrow," he said.
"Housing targets must properly recognise land lease communities, purpose built student accommodation and co-living, which all play a direct role in expanding supply and easing rental pressure."
"The tax and charge burden on new homes is a material constraint on supply, with around 30 per cent of the price of a new home now driven by taxes, fees and charges," he said.
"Lifting housing supply will require every level of government to focus on reducing cost pressures, not compounding them."
He also said this made it a poor moment for policy changes that would weaken housing investment.
"With economic headwinds building, this is not the time to experiment with tax changes that undermine supply," Mr Zorbas said.
"At a time of rising interest rates, global instability and a structural undersupply of new housing, proposals that would restrict the supply of new homes will make matters critically worse."
"The National Housing Accord is a rare opportunity. Governments should lock in the wins, fix the delivery bottlenecks and give investors the certainty needed to build the homes Australia needs."
