The weekly savings are significant, and show exactly how vital it is for the country to boost housing supply.
New data has revealed renters could collectively save more than $200 million per week if Australia meets its National Housing Accord targets.
For renters, the target to rapidly increase the construction of new homes can feel largely immaterial, or like it won’t help their particular housing issues, since new supply is first leveraged on the sales market. But recent data from the Property Council of Australia shows that increasing housing supply can have a direct financial impact on renting Australians.
Produced by Mandala Partners, the "Smarter Incentives, More Homes" report revealed Australia is projected to be 462,000 homes behind the National Housing Accord’s 1.2 million new homes by 2029 target.
But the report also revealed that bridging this gap could see renters across Australia save $90 each week, an annual saving of $4680.
The savings would be delivered due to increased supply softening the nation’s currently tight rental market, decreasing competition and leading to lower rental prices.
This means, over seven million renters would collectively save $255 million a week if Australia was to reach the ambitious housing target.
If Australia meets its housing targets, renters could collectively save $255 million a week. Picture: Getty
The report also found constructing the additional 462,000 homes could be expected to contribute $128 billion in economic activity and support 368,000 jobs.
Property Council chief executive Mike Zorbas said now is the time to increase housing supply with the “urgency and commitment this crisis demands”.
“Ideally, hitting the targets will make housing more accessible and more affordable for millions of Australians,” Mr Zorbas said.
“Boosting housing supply is the only long-term, sustainable way in which we can boost affordability of homes to buy and to rent.”
What renters could save across states
As Australia’s most populous state, NSW has the largest gap between its 375,000 target and forecast of 195,000 homes to be built.
According to the report, the state must build an additional 185,000 homes to meet the target, with potential savings of $130 per week for renters if this shortfall is met.
In Queensland, 151,000 homes are projected to be built to meet the 247,000 target. If the 96,000 shortfall is addressed, renters could save up to $80 per week.
Victoria, which has a target of 308,000 new homes, has to close its 71,000 shortfall in order for renters to save up to $50 per week.
In Western Australia, addressing the 56,000-home shortfall could save renters $100 per week, while bridging South Australia's 32,000-home gap might result in a $70 weekly saving for renters.
The New Home Bonus funds states and territories that exceed their National Housing Accord targets. Picture: Getty
The Northern Territory has an additional 9000 homes to build to meet its 11,000 targets. If met, renters could save $220 per week. Tasmania has to build 14,000 homes to reach its 25,000 target, saving renters $90 each week.
The ACT is currently projected to be the only jurisdiction to reach its target of 31,000 homes, with 6000 homes left to bridge the gap.
As a result, the territory could receive part of the New Homes Bonus, a $3 billion program aimed to provide funding to states and territories that achieve more than their share of targets under the National Housing Accord.
More incentive to build
The New Homes Bonus, first announced by the federal government in 2023 as part of the Help-to-Buy scheme, is there to incentivise states and territories to meet targets, but the Property Council has called for changes to the program to further support building.
The industry body has called for the bonus to be doubled to $6 billion and extended to seven years to support long-term reforms.
“We also need to improve the scheme’s transparency through public reporting and highlighting best practice to ensure accountability,” Mr Zorbas said.
“These changes would ensure the New Homes Bonus supports housing affordability in Australia and fosters better coordination between all levels of government to address this challenge.”
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