Australia faces a shortage of 1.9 million new homes, a gap that must be addressed to restore housing affordability. Current supply falls far short of demand, placing substantial pressure on buyers and renters. Meanwhile, population growth, migration, and shifting household patterns continue to drive strong demand.
This substantial shortfall represents a major growth opportunity for construction-sector suppliers and housing developers:
- A construction surge is required: Meeting the 1.9-million-home deficit will generate enormous demand for construction materials—cement, steel, aggregates, mechanical and electrical supplies, and interior/exterior finishing products.
- Supply chains will expand: Large-scale construction will drive demand for labour, engineering, logistics, and project management, strengthening the entire construction ecosystem.
- Improved affordability supports long-term demand: Expanding housing supply will enable more Australians to enter the property market, creating sustained, long-term momentum for residential development.
- Growth in new suburbs and affordable housing: The shortage encourages expansion into greenfield developments, outer-suburban areas, and affordable-housing projects, creating new territories for material suppliers.
- A building boom is inevitable: The report confirms that resolving affordability requires a national building boom, signalling strong future investment and elevated activity across the construction industry.
The 1.9-million-home deficit highlights both a structural challenge and a long-term growth horizon for material suppliers, distributors, and housing developers. Now is the optimal time to scale capacity, strengthen supply chains, and position for major construction demand across Australia.