Australia's housing markets are under significant strain. In 2018–19, two-thirds of new dwellings were priced in the $400,000 to $700,000 range—homes that could have accommodated many middle-class workers. These properties might have included two-bedroom apartments near train stations, townhouses in middle-ring suburbs, or large family homes in growth areas. By 2023–24, this proportion has declined to less than a quarter, leaving essential new housing stock at critically low levels.
This lack of affordable supply is impacting one-third of Australian households, earning $50,000 to $110,000 annually, as developers are not adding stock for them to rent or buy. A Housing Delivery Collaboration Program, uniting Local, State, and Commonwealth governments with the housing sector, is required to address this middle-income group.
Housing supply should be considered in three ways:
If these feasible capacities fall below anticipated demand, the Housing Delivery Collaboration Program can assist in selecting appropriate funding mechanisms or policy levers. These can be tailored to local housing market dynamics and agreed upon to boost housing delivery.
About this report
KPMG provides a high-level overview of the housing crisis in Australia and proposes the development of the Housing Delivery Collaboration Program, a significant economic reform initiative designed to address the pressing need for affordable housing across Australia.
Download the report.
Bridging the Housing Gap
Strategies for enabling affordable housing development in Australia
