National Housing Accord: 2026 Progress and the Road to 1.2 Million Homes

1 February 2026Updated 1 June 20265 min readBuilding Solution Australia

Official Government InformationThis article summarises publicly available government information. Building Solution Australia is not affiliated with, endorsed by, or acting on behalf of any government department or institution referenced. For authoritative information, refer to the original source linked below.

Two years into the National Housing Accord's five-year target period, Australia's housing construction pipeline faces persistent structural constraints. This article summarises publicly available data on completions, approvals, and the policy measures introduced in 2025–26 to accelerate delivery.

The National Housing Accord, agreed at National Cabinet in October 2022, set a national target of 1.2 million new well-located homes over the five years from 1 July 2024 — an average of 240,000 new homes per year.

Where the target came from

The 1.2 million figure was developed by the National Housing Supply and Affordability Council (NHSAC) and reflects modelling of underlying housing demand, population growth, and the existing housing shortfall. The Council's State of the Housing System report provides the most detailed publicly available analysis of housing supply and demand in Australia.

State and territory commitments

Each state and territory has been allocated a share of the 1.2 million target, with the Australian Government providing financial incentives — the $3 billion New Homes Bonus — for jurisdictions that exceed their share. NSW has the largest allocation, followed by Victoria and Queensland.

Structural challenges

Industry bodies including the Housing Industry Association (HIA) and Master Builders Australia have consistently noted that achieving the 1.2 million target will require: - A significant increase in construction workforce capacity - Planning reform to unlock land supply and accelerate approvals - Improvements in construction productivity — including through modern construction methods - Supply chain investment to support increased production volumes

Construction completions context

Australia completed approximately 177,000 new dwellings in 2022–23, according to the Australian Bureau of Statistics. Reaching 240,000 per year represents a significant step-up from recent completion rates.

BSA's perspective

Building Solution Australia's integrated platform — combining design, manufacturing, procurement, and construction delivery — is directly aligned with the productivity improvements the industry needs to approach the Accord target. Factory-based manufacturing of building components reduces dependence on on-site labour and can compress programme timelines.

Source Note

Based on publicly available information from the Australian Government, National Housing Supply and Affordability Council, HIA, and Master Builders Australia.

Building Solution Australia