According to Deloitte Access Economics, Australia’s ongoing housing crisis is projected to intensify before any improvement is seen, putting pressure on the federal government to address these issues in the upcoming May budget.

“The cost of land, materials, and labour will stay at higher levels, while recent insolvency rates suggest builders will need bigger profit margins if they are to deliver the significant lift in dwellings that governments and the community are crying out for,” said Stephen Smith, partner at Deloitte Access Economics, in the firm’s latest business outlook report.

Building challenges and economic pressures
Smith expressed concern that achieving the national goal of constructing 1.2 million new homes from mid-2024 may not be feasible due to the current construction pace, hindered by sluggish new dwelling starts and a backlog of unfinished homes plaguing builders, according to an NCA Newswire report.

“The correcting [of] the housing crisis will take years and will get quite a lot worse before it gets better,” Smith said.

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