A new state–federal agreement could make it easier for first‑home buyers to break into Queensland’s market, with thousands of new homes set to be delivered.
Queensland is the latest state to sign on to the Albanese government’s national housing initiative, securing funding to enable over 51,000 homes statewide — including 20,000 reserved for first‑home buyers.
Under the $2 billion deal, 20,000 new homes will be built exclusively for first-home buyers. Picture: Getty
The agreement is part of the government’s election commitment to build 100,000 homes for first-home buyers nationwide, following similar deals with South Australia, the ACT, Tasmania and Western Australia.
Under Queensland’s deal, the federal government will provide $2 billion, comprising $399 million in grants and $1.6 billion in zero‑interest concessional loans, to fund critical infrastructure needed to deliver the new homes. The Queensland government will match the $399 million grant component.
According to the state government, the infrastructure will include road and sewerage upgrades across Priority Development Areas (PDAs) such as Mount Peter, Southern Thornlands and Waraba.
Federal housing minister Clare O’Neil said investing in infrastructure was essential to boosting housing supply.
“We’re investing in the boring but essential infrastructure like roads and sewerage that help us unlock more homes for Queenslanders, because the more homes we build, the more affordable housing becomes,” Ms O’Neil said.
“Thanks to this agreement we’ve reached, there will be thousands more Queenslanders getting the keys to their own home.”
Infrastructure in the spotlight
The announcement follows the 2026 federal budget, which included a range of initiatives aimed at boosting housing supply nationwide.
Among them was $2 billion in funding for the Local Infrastructure Fund, expected to support roads, water, power and sewerage projects and enable the construction of up to 65,000 homes over the next decade.
The funding will be distributed to local governments and state utility providers, with $500 million reserved for regional Australia, and will be contingent on states and territories committing to pro‑housing supply reforms.
These include faster and simpler planning approvals and making more land available for housing.
Industry groups have welcomed the Queensland announcement, highlighting the need to align infrastructure delivery with housing supply.
Housing Industry Association (HIA) Queensland executive director Michael Roberts said targeting key growth areas was an important step forward.
“Targeting Priority Development Areas such as Mount Peter, Southern Thornlands and Waraba is a positive step that will help bring forward new housing opportunities in key growth regions,” Mr Roberts said.
“Any investment that helps unlock land, bring forward essential services and get homes to market sooner will make a real difference for Queensland first‑home buyers, and ease broader supply constraints.
“Getting the fundamentals right — land, infrastructure and approvals — is the key to improving housing affordability in Queensland.”
Master Builders Australia also welcomed the deal, saying infrastructure investment was critical to improving supply and affordability.
“Master Builders has continued to reiterate that increasing housing supply will increase affordability. Making projects ‘shovel ready’ is part of the puzzle,” Master Builders Australia acting CEO Melissa Byrne said.
“Australia needs to see a material uplift in supply and governments at all levels must focus on policies that encourage investment, improve efficiency, cut unnecessary red tape and grow the construction workforce while delivering enabling infrastructure.”
The first of Queensland’s new homes for first-home buyers are expected to be completed by mid‑2028.
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