{"id":2778,"date":"2026-04-21T08:48:52","date_gmt":"2026-04-21T01:48:52","guid":{"rendered":"https:\/\/materialedgegroup.au\/?p=2778"},"modified":"2026-04-21T13:31:05","modified_gmt":"2026-04-21T06:31:05","slug":"australia-housing-crisis-deepens-as-1-2-million-homes-target-set-to-fail","status":"publish","type":"post","link":"https:\/\/materialedgegroup.au\/vi\/australia-housing-crisis-deepens-as-1-2-million-homes-target-set-to-fail\/","title":{"rendered":"Australia Housing Crisis Deepens as 1.2 Million Homes Target Set to Fail"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-2779\" src=\"https:\/\/materialedgegroup.au\/wp-content\/smush-webp\/2026\/04\/Breaking-news-21-x-5.2-cm-10.jpg.webp\" alt=\"\" width=\"1920\" height=\"475\" srcset=\"https:\/\/materialedgegroup.au\/wp-content\/smush-webp\/2026\/04\/Breaking-news-21-x-5.2-cm-10.jpg.webp 1920w, https:\/\/materialedgegroup.au\/wp-content\/uploads\/2026\/04\/Breaking-news-21-x-5.2-cm-10-300x74.jpg 300w, https:\/\/materialedgegroup.au\/wp-content\/smush-webp\/2026\/04\/Breaking-news-21-x-5.2-cm-10-1024x253.jpg.webp 1024w, https:\/\/materialedgegroup.au\/wp-content\/smush-webp\/2026\/04\/Breaking-news-21-x-5.2-cm-10-768x190.jpg.webp 768w, https:\/\/materialedgegroup.au\/wp-content\/smush-webp\/2026\/04\/Breaking-news-21-x-5.2-cm-10-1536x380.jpg.webp 1536w, https:\/\/materialedgegroup.au\/wp-content\/uploads\/2026\/04\/Breaking-news-21-x-5.2-cm-10-18x4.jpg 18w, https:\/\/materialedgegroup.au\/wp-content\/smush-webp\/2026\/04\/Breaking-news-21-x-5.2-cm-10-600x148.jpg.webp 600w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/p>\n<h2><strong>Australia Housing Crisis Deepens as 1.2 Million Homes Target Set to Fail \u2013 Productivity Crisis Raises Alarm<\/strong><\/h2>\n<h3><strong>Australia housing crisis reaches breaking point<\/strong><\/h3>\n<p>Australia\u2019s housing affordability crisis has officially reached a \u201ctoo big to ignore\u201d stage, according to Productivity Commission Chair Danielle Wood. The Federal Government\u2019s ambitious target of delivering 1.2 million new homes within five years is now widely expected to fail, raising serious concerns across the construction and economic sectors.<\/p>\n<p>This development highlights a structural breakdown in both housing supply and construction productivity, reinforcing growing fears that the Australia housing crisis is no longer cyclical, but systemic.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4105 lazyload\" data-src=\"https:\/\/pistis.au\/wp-content\/uploads\/2026\/04\/214.jpg\" alt=\"\" width=\"624\" height=\"416\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 624px; --smush-placeholder-aspect-ratio: 624\/416;\" \/><\/p>\n<p style=\"text-align: center;\">Danielle Wood says Australia&#8217;s housing affordability problem is too big to ignore.<\/p>\n<p style=\"text-align: right;\"><em>(ABC News: Mitch Edgar)<\/em><\/p>\n<p>Danielle Wood says Australia&#8217;s housing affordability problem is too big to ignore.\u00a0<em>(ABC News: Mitch Edgar)<\/em><\/p>\n<h3><strong>Housing affordability worsening faster than income growth<\/strong><\/h3>\n<p>Key challenges driving the <strong>Australia housing crisis<\/strong> include:<\/p>\n<ul>\n<li>Housing prices rising faster than incomes<\/li>\n<li>Young people being pushed out of major cities<\/li>\n<li>Home ownership increasingly dependent on family wealth<\/li>\n<\/ul>\n<p>At the same time, housing supply remains constrained due to planning restrictions and limited construction capacity.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4107 lazyload\" data-src=\"https:\/\/pistis.au\/wp-content\/uploads\/2026\/04\/214-1.jpg\" alt=\"\" width=\"1920\" height=\"1281\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1920px; --smush-placeholder-aspect-ratio: 1920\/1281;\" \/><\/p>\n<p style=\"text-align: center;\">Construction productivity has fallen.<\/p>\n<p style=\"text-align: right;\"><em>(ABC News: Ned Hammond)<\/em><\/p>\n<h3><strong>Construction productivity continues to decline<\/strong><\/h3>\n<p>A major structural issue lies in the construction sector:<\/p>\n<ul>\n<li>Productivity has fallen by 12% over the past 30 years<\/li>\n<li>Labour productivity growth is just 0.4% annually (\u00bc of historical average)<\/li>\n<\/ul>\n<p>This decline directly limits the industry\u2019s ability to scale housing delivery efficiently.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-4106 size-full lazyload\" data-src=\"https:\/\/pistis.au\/wp-content\/uploads\/2026\/04\/214-2.jpg\" alt=\"Danielle Wood says Australia housing crisis had a more ambitious reform agenda in the 1980s and 90s. (AAP: Dean Lewins)\" width=\"1763\" height=\"1176\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1763px; --smush-placeholder-aspect-ratio: 1763\/1176;\" \/><\/p>\n<p style=\"text-align: center;\">Danielle Wood says Australia had a more ambitious reform agenda in the 1980s and 90s.<\/p>\n<p style=\"text-align: right;\"><em>(AAP: Dean Lewins)<\/em><\/p>\n<h3><strong>Structural bottlenecks slowing housing delivery<\/strong><\/h3>\n<p>Two core barriers remain:<\/p>\n<ul>\n<li>Regulatory constraints (zoning, approvals)<\/li>\n<li>Labour shortages and low efficiency<\/li>\n<\/ul>\n<p>Without major reform, experts agree Australia will continue to miss its housing targets.<\/p>\n<h3><strong>AusMod20K: A scalable solution aligned with market needs<\/strong><\/h3>\n<p>In the context of rising costs, labour shortages, and declining productivity, the market is increasingly shifting toward industrialised construction models.<\/p>\n<p>This is where AusMod20K becomes highly relevant.<\/p>\n<p>By moving up to 90% of construction into factory-based production, AusMod20K directly addresses the structural issues highlighted:<\/p>\n<ul>\n<li>Reduces reliance on on-site labour<\/li>\n<li>Shortens project timelines significantly<\/li>\n<li>Improves cost certainty and scalability<\/li>\n<\/ul>\n<p>As Australia\u2019s housing system faces growing pressure, solutions like AusMod20K are not just alternative approaches \u2014 they represent a practical pathway to deliver housing at scale, with speed and predictability aligned to market demand.<\/p>\n<p><strong>If you would like to<\/strong><\/p>\n<p>Become a partner of the AUSMOD20K program, please click this link: <a href=\"https:\/\/ausmod20k.com.au\/partner-au\/\" target=\"_blank\" rel=\"noopener\">Partner<\/a><\/p>\n<p>Become a supplier for the AUSMOD20K program, please click this link: <a href=\"https:\/\/ausmod20k.com.au\/register-supplier\/\" target=\"_blank\" rel=\"noopener\">Supplier<\/a><\/p>\n<p>See detailed information at: <a href=\"https:\/\/www.abc.net.au\/news\/2026-04-17\/housing-supply-top-priority-for-productivity-commissioner\/106571582?fbclid=IwZnRzaARQXL5leHRuA2FlbQIxMQBzcnRjBmFwcF9pZAo2NjI4NTY4Mzc5AAEejp1-2k_5Kvj00AOqYcI3xBTi3GZ9cjk6BOwRlYAADkgVrw23jXki1qGuVqY_aem_NlXx0k1Jn1eUbHNJzIZ1CQ\" target=\"_blank\" rel=\"noopener\">TIN T\u1ee8C<\/a><\/p>\n<p>See other information at: <a href=\"https:\/\/materialedgegroup.au\/category\/news\/\">TIN T\u1ee8C<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Australia Housing Crisis Deepens as 1.2 Million Homes Target Set to Fail \u2013 Productivity Crisis Raises Alarm Australia housing crisis reaches breaking point Australia\u2019s housing affordability crisis has officially reached a \u201ctoo big to ignore\u201d stage, according to Productivity Commission Chair Danielle Wood. The Federal Government\u2019s ambitious target of delivering 1.2 million new homes within [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/materialedgegroup.au\/vi\/australia-housing-crisis-deepens-as-1-2-million-homes-target-set-to-fail\/\">Read More&#8230;<span class=\"screen-reader-text\"> from Australia Housing Crisis Deepens as 1.2 Million Homes Target Set to Fail<\/span><\/a><\/p>","protected":false},"author":2,"featured_media":2780,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-2778","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/materialedgegroup.au\/vi\/wp-json\/wp\/v2\/posts\/2778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/materialedgegroup.au\/vi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/materialedgegroup.au\/vi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/materialedgegroup.au\/vi\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/materialedgegroup.au\/vi\/wp-json\/wp\/v2\/comments?post=2778"}],"version-history":[{"count":1,"href":"https:\/\/materialedgegroup.au\/vi\/wp-json\/wp\/v2\/posts\/2778\/revisions"}],"predecessor-version":[{"id":2781,"href":"https:\/\/materialedgegroup.au\/vi\/wp-json\/wp\/v2\/posts\/2778\/revisions\/2781"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/materialedgegroup.au\/vi\/wp-json\/wp\/v2\/media\/2780"}],"wp:attachment":[{"href":"https:\/\/materialedgegroup.au\/vi\/wp-json\/wp\/v2\/media?parent=2778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/materialedgegroup.au\/vi\/wp-json\/wp\/v2\/categories?post=2778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/materialedgegroup.au\/vi\/wp-json\/wp\/v2\/tags?post=2778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}