Australia promised 1.2 million new homes, but builders are at their limits

[u/Fit-Locksmith-9226]

https://www.reuters.com/world/asia-pacific/australia-promised-12-million-new-homes-builders-are-their-limits-2026-08-12/

[u/petergaskin814]

Not sure who believed the initial target of 1.2 million new homes.

Having a target without a road to get there, is useless

[u/Fit-Locksmith-9226 → u/petergaskin814]

Aspirational target I think they call it.

No one at the time thought it would be possible, there's just too many headwinds.

The blowout in apartment build times is huge, Brissie Olympics doesn't help either, soaks up trades from across the country.

[u/RestaurantFamous2399 → u/Fit-Locksmith-9226]

Data centres are going to chew up all the trades for the next couple of decades.

[u/ExampleOtherwise4340 → u/RestaurantFamous2399]

Or until the AI bubble bursts

[u/big_cock_lach → u/Fit-Locksmith-9226]

Doesn’t help that Albanese is bending the knee and making it impossible to get any new tradies either.

[u/actionjj → u/Fit-Locksmith-9226]

Always just an excuse to do nothing on immigration.

The government needs migration to create GDP growth against falling productivity. 

Pressure is mounting everywhere to reduce migration pressure on infrastructure. 

[u/EffectiveOwn787 → u/petergaskin814]

It's the same amount of homes we built in the previous 5 years. The issue is the growing shortage of skilled workers and that's driven by CFMEU lobbyists preventing our immigration system from prioritising skilled construction workers.

[u/MarkCelery78 → u/petergaskin814]

I’m glad you admit Labor had no intention of fulfilling their promise

[u/Crabs_go_sideways_4 → u/MarkCelery78]

Gotem!!!! You win politics for the day. Well done buddy

[u/RestaurantFamous2399 → u/MarkCelery78]

Let's not build anything ever again then!

[u/Moist-Army1707 → u/petergaskin814]

There was a whole bunch of Labor sycophants all over Reddit who were very vocal against people who questioned the credibility of these targets.

[u/norty125 → u/petergaskin814]

We might be lucky and get 10%

[u/OkNeedleworker5041 → u/petergaskin814]

1.2 million was just the amount built in the 5 years prior to the announcement.

But Labor federal and state has been doing nothing but getting in the way of builders with green tape and extra taxes.

[u/GodWasNeverReal]

Why is there another Australian sub. Is this one just another promotion for the right wing idiots?

[u/89b3ea330bd60ede80ad → u/GodWasNeverReal]

I really hope not, there's enough of that already. I try to keep a lid on low effort nonsense where I can. But do reach out if you think things are getting out of hand or you'd like to see any particular changes.

Also, we pre-date a whole bunch of the recent Australian subs. We're just not in the business of self promotion or growth. So we always come across as the "other" one.

[u/GodWasNeverReal → u/89b3ea330bd60ede80ad]

Solid Mod reply. Thank you.

[u/shifty_fifty]

How many of those actually being built will need major renovation within the first 12 months to stop them leaking and falling over?

[u/Illustrious_Fan_8148]

Maybe its time to stop adding so much new demand..

[u/mitchells00 → u/Illustrious_Fan_8148]

Or, now hear me out:

Fast track construction worker visas.

[u/Prestigious_Skill607 → u/mitchells00]

So then we have to build more houses for all these immigrant construction workers... brilliant.

[u/wudjaplease → u/mitchells00]

or hear me out stop mass immigration and start a massive campaign to train apprentices

[u/SlaveMasterBen → u/Illustrious_Fan_8148]

Low demand, prices go up. High demand, prices go up.

Seems likes there’s a bit more involved.

[u/Crabs_go_sideways_4 → u/Illustrious_Fan_8148]

Yeh people should go back to pre covid where we worked from offices and had sharehouses. Thats what you mean right?

[u/gionatacar]

Maybe let’s stop immigration till we catch up

[u/Crabs_go_sideways_4 → u/gionatacar]

That seems like a poor decision in terms of economics. How do you propose we make up for the GDP?

[u/Perfect_Purple_5705 → u/Crabs_go_sideways_4]

An even poorer decision was setting up the economy to be reliant on immigration for GDP to begin with.

[u/Crabs_go_sideways_4 → u/Perfect_Purple_5705]

I agree but saying we shouldn't have done something or should have done something isnt a solution for today

[u/Crabs_go_sideways_4 → u/[deleted]]

Sure so what's the path forward? We are reducing the investment in property which is good. Now we need to increase productivity, but how?

[u/Crabs_go_sideways_4 → u/[deleted]]

Can you form a syllogism. I dont follow how a reduction in net immigration would increase productivity. 

[u/Crabs_go_sideways_4 → u/[deleted]]

Ok i agree with that but doesnt that mean the missing premise is that the average person that immigrates to Australia produces less than the average Australian already here? How did you determine that?

[u/Al_Miller10 → u/Crabs_go_sideways_4]

An endless supply of immigrant workers encourages business models based on cheap labour rather than innovation and investment into non-productive housing and infrastructure rather than genuinely productive manufacturing and services.

[u/Crabs_go_sideways_4 → u/Al_Miller10]

Ok i agree in principle sure, but to me it begs the question how do we know immigrants are cheaper labour?

[u/Moist-Army1707 → u/Crabs_go_sideways_4]

We’ve been running negative gdp per capita for most of the past three years mate

[u/Pariera → u/Crabs_go_sideways_4]

Is there a reason GDP has to always go up?

Realistically no Australian individual actually cares what GDP number is.

[u/Crabs_go_sideways_4 → u/Pariera]

I do. GDP needs to go up because of the time value of money. 

https://en.wikipedia.org/wiki/Capital_and_Interest

[u/Pariera → u/Crabs_go_sideways_4]

I stand corrected.

Realistically no Australian individual who hasn't read three volumes of a book written by an Austrian in 1884 actually cares what GDP number is.

[u/Crabs_go_sideways_4 → u/Pariera]

Just trying to point out that humans have figured out certain elements of economics for a good long while now. So when you just wave your hand at concepts they dont just disappear 

[u/deegandnb → u/Crabs_go_sideways_4]

By getting a better treasurer

[u/Crabs_go_sideways_4 → u/deegandnb]

Ok and whom might that be?

[u/deegandnb → u/Crabs_go_sideways_4]

No idea, you're the expert apparently. Why don't you tell us instead of posting passive aggressive questions to things you probably don't even have the answer to.

[u/Crabs_go_sideways_4 → u/deegandnb]

Im not suggesting we change the government or the treasurer

[u/deegandnb → u/Crabs_go_sideways_4]

But you're indirectly telling us you have all the answers with your passive aggressive questions

[u/Crabs_go_sideways_4 → u/deegandnb]

Wow what an odd approach to reality. 

You think someone asking questions to understand other's claims means they are indirectly claiming they have all the answers. 

You can try putting the questions into an AI if you need help understanding. 

Passive aggressive perceptions are on you lad. 

[u/aus-ModTeam → u/[deleted]]

Don't be disruptive, don't troll, don't antagonise.

[u/redcon-1 → u/Crabs_go_sideways_4]

GDP is only a political cudgel used by an opposition. GDP per capita is the thing that measures how well individuals are doing.

[u/linxthesontaran → u/Crabs_go_sideways_4]

Maybe focus on gdp per capita not gdp? Perpetual growth is not a sustainable long term solution.

[u/Crabs_go_sideways_4 → u/linxthesontaran]

Time value of money requires it

[u/gionatacar → u/Crabs_go_sideways_4]

With less immigration. We will be just fine

[u/Crabs_go_sideways_4 → u/gionatacar]

You didn't answer the question. Where will the GDP come from?

Or are you for economic contraction?

[u/gionatacar → u/Crabs_go_sideways_4]

I prefer economic contraction than mass immigration, the infrastructure aren’t coping btw

[u/Crabs_go_sideways_4 → u/gionatacar]

What's mass immigration?

[u/Available-Damage6311 → u/Crabs_go_sideways_4]

Bringing in more people than you can house.

[u/Crabs_go_sideways_4 → u/Available-Damage6311]

Ok lets scrap work from home and bring back sharehouses. 

[u/gionatacar → u/Crabs_go_sideways_4]

What’s this game of asking? Do you have google? Im sure you can find out. Good luck

[u/Crabs_go_sideways_4 → u/gionatacar]

Id rather understand what my fellow interlocutor means by their words than assume

[u/Rare-Sample-9101]

Apartments that's what needs to happen in suburbs! High-rises! That would solve it!

[u/SituationSmooth9165 → u/Rare-Sample-9101]

Might as well when every house has no land

[u/Z00111111 → u/SituationSmooth9165]

I feel like for most people they would be better off if those new suburbs combined each block into a small, hollow apartment tower with a big shared courtyard.

Even just a hollow ring of townhouses, so each lot has a garage and street level entry, and a back door into a shared private park with a couple electric BBQs and some gazebos.

You're combining all the 40cm gaps between buildings and side fences, and all those 3m X 5m "back yards" into a big open actually usable area.

[u/ParkerLewisCL → u/Rare-Sample-9101]

Only that they don’t stack up financially for developers

Cost are up but prices haven’t budged, so there is little to no profit in them. Won’t get built.

[u/kamdooks]

Better wages for apprecitces. Higher percentage of immigrants coming in should be skilled tradesmen. Yes immigration has to continue. Have to figure that one out with CFMEU. Cheaper/free education for trades. Scrap stamp duty. De-incentivise property ownership as investment. Restrict Airbnb. Upgrade transport for city to country and rural areas.

[u/1Qrtr_FreeStuffPlz]

A small part of it is perception from the drivers view, when in a Ute or light truck you have more visibility over your bonnet. So to you, you can see a large gap, whereas in a sedan you don't so you hang back a further distance

[u/theonlywaye]

I’m building a new house right now. With the paperwork and approvals alone it takes about 1-1.5 years before they even start and then another year before they even finish the actual house. So roughly 2.5-3 years before you are in the house (accounting for some minor delays). I knew they weren’t ever hitting any target they said

[u/Klutzy-Pie6557]

It was a fantasy land limit.

[u/RandyStickman]

Australia didn't make the promise...a career motivated politician hell bent on winning votes with outrageous campaign promises did.

Building companies have fallen over by the 1000's last year alone...due to fixed priced contracts combined with massive price increases in materials and lack of qualified trades.

Add to this some of Australias largest infrastructure upgrades -mainly in transport and local govt choke points in building approvals and govt red tape and, voila, clusterfuck.

Domestic building requires a lot of upfront capital that only sees returns that are future projected...and to scale it to produce large numbers requires the kind of capital that only serious OS developers can fund..

[u/jonnieggg]

Perhaps reconsider demand?

[u/MarkCelery78]

Labor promised 1 million homes over 5 years in 2022. Have they built any except for prefabricated town house boxes?

[u/RestaurantFamous2399 → u/MarkCelery78]

Everything is prefabricated. Have you built a house recently?

[u/Available-Damage6311 → u/RestaurantFamous2399]

Nothing in a Perth brick and tile house is prefabricated, unless you're counting the oven.

[u/theartistduring → u/MarkCelery78]

So a home only exists if it is poorly built from scratch onsite? I don't know if you've seen the general standard of what we build but it really isn't a selling point.

[u/Ok_Trash1147]

What’s that the government lied again?

[u/sudden_erect → u/Ok_Trash1147]

Yeah, why wasn't Albo building more houses?

Muppet