Housing supply performance varies considerably between states, and reform momentum remains uneven. A recent Housing Industry Association scorecard identifies Western Australia and South Australia as leading jurisdictions in planning reform, particularly through large-scale rezonings and structured land release initiatives.
During FY2025, 173,232 dwellings were completed nationally. This outcome leaves the country 66,768 homes short of the annual Housing Accord target. To close that gap and restore alignment with long-term housing objectives, approximately 260,000 dwellings must be constructed each year for the next four years. The scale of this requirement underscores the magnitude of reform needed.
Western Australia has accelerated delivery of shovel-ready land through coordinated rezoning and improved subdivision processes. South Australia has implemented comparable land release programs, strengthening forward supply pipelines. These reforms enhance developer certainty and reduce bottlenecks that typically delay new housing projects.
Victoria and the Australian Capital Territory have introduced incremental improvements, yet approval timelines and planning constraints remain material challenges. New South Wales has advanced transport-oriented development rezonings; however, questions remain as to whether these policy adjustments will translate into consistent dwelling completions.
Tasmania continues to face limitations linked to weak land supply planning. Queensland and the Northern Territory rank lowest in the HIA reform assessment, raising concerns about future supply capacity despite population growth pressures.
Planning reform directly affects affordability. Protracted approvals, inconsistent zoning rules and infrastructure delays elevate holding costs and compress development feasibility. Conversely, streamlined systems can increase construction throughput and moderate long-term price escalation.
The shortfall of 66,768 homes in FY2025 illustrates how quickly undersupply can accumulate. Without sustained annual delivery approaching 260,000 dwellings, structural shortages will persist, placing upward pressure on both purchase prices and rents.
Long-term housing stability depends on regulatory efficiency as much as market demand. Jurisdictions demonstrating decisive reform leadership are better positioned to meet national targets and support economic expansion.
