The Prime Minister is under mounting pressure to dismiss Housing Minister Clare O'Neil following a fresh report that concludes Labor's ambitious 1.2 million homes target is virtually unattainable without sweeping reforms.
Report Highlights Challenges
The Australian Housing and Urban Research Institute (AHURI) released findings indicating that the Albanese government's aspirational goal will remain "very challenging" if productivity stays flat and market volatility persists. The report points to the sector's fragmented structure as a key factor hindering productivity and long-term capability.
Market volatility, driven by high migration and demographic shifts, further complicates the outlook. "There is a need to grow labour capacity in line with economic growth. Migration is an option. However, migration increases housing demand, which in turn increases labour demand," the report states.
Political Backlash
Institute of Public Affairs Deputy Executive Director Daniel Wild described the National Housing Accord as "dead as a dodo." He accused the government of broken promises and called for accountability. "Another broken promise by a broken government which has overseen one of the biggest public policy failures we have ever seen," Wild told SkyNews.com.au.
"Australians are right to ask about where the accountability is. Why on earth hasn't the housing minister been fired for failing to build the homes she said would be built?" he added. Wild urged the government to cut immigration and reduce red tape, including overhauling the National Construction Code.
Shadow housing minister Andrew Bragg noted that Labor's own modelling shows a shortfall of 200,000 dwellings from the target. Currently, the government is approximately 100,000 homes behind schedule. In the May 2026-27 Budget, Labor reduced funding for the New Homes Bonus from $3 billion to $0.7 billion, which was intended to incentivise states to deliver an extra 200,000 homes.
Bragg criticised the government's approach: "Labor has effectively given up on the housing target and on housing supply. Australia needs more homes, lower taxes, less red tape and no gimmicks."
Minister's Defence
Housing Minister Clare O'Neil has defended the government's progress despite warnings from Treasury and other agencies that the target is failing. "We are working towards making the target. This is a really ambitious goal for the country," O'Neil told Sky News in August last year. She emphasised the need for energy and drive to change the way housing works.
The AHURI report, based on 18 months of research involving 19 researchers, focused on both detached and high-rise housing construction. The National Housing Accord, launched in July 2024, aims to deliver 1.2 million new homes by 2029 to improve availability and affordability.
However, Treasury warned in July last year that the target "will not be met," a leaked advice revealed. The National Housing Supply and Affordability Council projects a shortfall of over 250,000 homes—roughly 20 per cent of the target. Housing responsibility is shared between federal and state governments, with most planning and zoning powers held by the states.
