Australia faces a deepening housing crisis as the Albanese government’s plan to deliver 1.2 million new homes under the National Housing Accord falls short, while record immigration drives up demand and leaves many Australians struggling to find a place to live. As of mid-2025, the gap between housing supply and population growth has created a new group of people described as “Aussies with nowhere to go,” highlighting the urgent need for stronger action.
The National Housing Accord, launched in July 2024, set a bold goal: build 1.2 million new homes by 2029 to address rising costs and a shortage of available properties. However, recent data shows that only about 938,000 homes are expected to be completed during this period, leaving a shortfall of roughly 262,000 homes. This gap is especially concerning as the country experiences record immigration, with 440,330 permanent and long-term arrivals in the 12 months leading up to April 2025—the second highest figure ever recorded.
The Australian Bureau of Statistics (ABS) reports that just 43,517 new homes were finished nationwide in the March 2025 quarter, a 4% drop from the previous quarter. Even though housing starts increased by 14% to 47,645, this is still well below the 60,000 homes per quarter needed to meet the Accord’s target. Supply chain problems, higher construction costs, and strict regulations have all contributed to the slowdown. Many experts and advocacy groups also point to the government’s delay in releasing the promised National Housing and Homelessness Plan—a 10-year strategy—as a major reason for the lack of progress.
Australia’s population is growing quickly, mainly due to high levels of immigration. The population growth rate stands at 1.6% for 2024–25 and is expected to slowly drop to 1.2% by 2034–35. Net overseas migration remains the main driver of this growth. After the pandemic, immigration surged, peaking at 536,000 in 2022–23, and while it has eased slightly, it is still much higher than before the pandemic. Most new arrivals settle in capital cities and urban areas, putting even more pressure on housing markets that are already stretched thin.
Public concern about these trends is rising. According to a 2025 Lowy Institute poll, 53% of Australians now believe immigration levels are too high, up five percentage points from the previous year. This growing unease reflects the real-life struggles many people face as they try to find affordable housing in a crowded market.
The result of these combined pressures is a new and growing group of Australians—especially low- and middle-income renters—who face serious housing insecurity. Rental prices in major cities have jumped by 57% over the past decade, making it even harder for many families to keep up. Social housing, which is meant to help those most in need, makes up only about 4% of all homes. This limited supply means longer waiting lists and more people at risk of homelessness.
Advocacy groups like Everybody’s Home warn that unless the government acts quickly, the crisis will only get worse. They point to rising numbers of people living in overcrowded conditions, being forced to move far from jobs and schools, or even becoming homeless. The Property Council of Australia also stresses that current rates of housing construction are not enough to meet demand, which could threaten both affordability and social stability in the long run.
In response, the Albanese government has reaffirmed its commitment to the National Housing Accord and has increased funding for social and affordable housing. The plan now includes an extra 55,000 social and affordable homes during the Accord period, with states expected to add at least 25,000 more. Rent Assistance payments were also increased in 2023-24, helping some tenants cope with rising rents. This change reduced the share of Rent Assistance recipients paying unaffordable rents from 44% to 39%.
Despite these efforts, many experts and community groups say more needs to be done. They call for a range of solutions, including:
- Building 940,000 new social homes over the next 20 years to meet long-term needs
- Removing tax breaks that favor property investors over first-time buyers and renters
- Creating uniform renter protections across all states and territories
- Raising income support for vulnerable Australians to help them afford housing
Critics argue that the government’s housing policy lacks a clear, long-term strategy. The absence of the National Housing and Homelessness Plan is seen as a major failure, leaving federal and state governments without a shared roadmap for tackling the crisis.
For many Australians, especially recent migrants and those on lower incomes, the housing shortage means longer waits for social housing, higher rents, and a greater risk of homelessness. Urban centers are feeling the strain as infrastructure and public services struggle to keep up with the growing population. The government’s ability to speed up housing construction and manage immigration levels will be key to easing these pressures.
The 2025 federal election confirmed the Albanese government’s mandate, but housing remains one of the top issues for voters. Many expect new policy changes in the coming months aimed at fixing supply problems and making homes more affordable. Experts say that a truly effective response will require better coordination between federal and state governments, reforms to land use and planning laws, and a focus on unlocking more land for new homes.
Key data highlights the scale of the challenge:
- The National Housing Accord aims for 1.2 million new homes by 2029, but only 938,000 are forecasted, leaving a shortfall of 262,000.
- In the first quarter of 2025, only 43,517 new homes were completed, a 4% drop from the previous quarter.
- Net overseas migration reached 440,330 arrivals in the year to April 2025.
- Rental prices in capital cities have risen by 57% over the past ten years.
- Social housing stock remains low, at about 4% of all homes.
- More than half of Australians (53%) now say immigration levels are too high.
The National Housing Supply and Affordability Council, the Australian Bureau of Statistics, and the Department of Social Services all play important roles in tracking these trends and shaping policy responses. Advocacy groups like Everybody’s Home and industry bodies such as the Property Council of Australia continue to push for urgent reforms.
As reported by VisaVerge.com, the Albanese government’s struggle to meet its 1.2 million new homes target, combined with record immigration, has created a perfect storm for Australia’s housing market. The failure to keep up with demand has left many people—especially those with lower incomes or new to the country—without stable housing options.
Looking ahead, the government faces tough choices. It must find ways to speed up home building, make housing more affordable, and ensure that immigration policy matches the country’s ability to provide for new arrivals. This will likely mean more investment in social and affordable housing, changes to tax and planning rules, and closer cooperation between all levels of government.
For those affected, practical steps include checking eligibility for Rent Assistance and social housing programs, staying informed about new housing developments, and seeking support from advocacy groups. The Department of Social Services provides information on available support and how to apply for assistance at their official website.
In summary, Australia’s housing crisis is the result of missed targets under the National Housing Accord and record immigration levels. The government’s response will shape the future for millions of Australians, especially those now described as “Aussies with nowhere to go.” Stronger action, better planning, and a focus on both supply and demand are needed to ensure everyone has a safe and affordable place to call home.
Learn Today
National Housing Accord → A government plan aiming to deliver 1.2 million new homes by 2029 to address housing shortages.
Social Housing → Government-subsidized housing designed to provide affordable homes for low-income individuals and families.
Net Overseas Migration → The balance of people entering minus those leaving a country, driving population growth.
Rent Assistance → Government payments helping low-income renters afford rising housing costs and prevent homelessness.
Housing Insecurity → The lack of stable, affordable, and safe housing, causing stress and risk of homelessness.
This Article in a Nutshell
Australia’s housing shortage worsens due to unmet National Housing Accord targets and record immigration. Rising rents and limited social housing strain families. Urgent government action is needed to speed construction, improve affordability, and align immigration rates to ensure stable, affordable homes for all Australians amid growing demand challenges.
— By VisaVerge.com
