Brace for impact: the housing crisis is intensifying, and political blame games aren’t helping fix it.
Nationals senator Bridget McKenzie delivered a pointed critique of Labor’s housing plan after fresh data showed the government lagging further behind its target of 1.2 million new homes.
According to Australian Bureau of Statistics figures, dwelling approvals dropped 6.4% in October. Separate data revealed the value of existing residential properties jumped by $317 billion in the September quarter. Labor’s National Housing Accord sets out a goal to deliver 1.2 million new, well-located homes by July 2029. Yet the ABS data now places the government more than 70,000 homes behind schedule, while rising house prices continue to compound affordability pressures.
On Seven’s Sunrise, Senator McKenzie accused Labor of defending their own numbers, declaring, “70,000 shortfall is a monumental fail.” She argued that housing affordability—the economy’s linchpin—was moving in the wrong direction, with rents and mortgage costs climbing due to what she described as an inflation problem created by the government.
In response, Housing Minister Clare O’Neil interrupted to challenge the claim, saying, “That’s not right. You can’t just make it up.” Earlier in the program, Sunrise host Nat Barr pressed O’Neil on whether the data signaled a bad omen for the government. O’Neil contended that the big picture shows a long-standing housing challenge and that the government is actively addressing it.
She highlighted some positive signals: a rise in home commencements compared with a year ago, and ongoing efforts to expand social and affordable housing. The government points to its investments—highlighting substantial social and affordable housing development—and notes more renters are benefited while first-home buyers are re-entering the market. Still, O’Neil emphasized that meaningful progress will require sustained effort over many years.
Labor has pursued affordable housing through the $10 billion Housing Australia Future Fund, with Commonwealth investment supporting more than 5,000 social and affordable homes since 2022. The party also rolled out the Help to Buy scheme, set to commence on December 5, designed to assist first-home buyers. Eligible participants can co-purchase a property with the government, which will contribute up to 40% of the purchase price for new homes or 30% for existing homes.
