How Will Labor’s “Aspirational” Target Of One Million Affordable Homes Work?

The Albanese government has set an “aspirational” target of a million homes under a new National Housing Accord deal.

Announced at Tuesday’s Federal Budget, the historic agreement includes governments, investors, and the construction sector.

The deal also honours Labor’s election promise to build 30,000 new social and affordable housing properties in five years, under the $10 billion Housing Australia Future Fund.

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So, what does it all mean?

The federal government will spend $350 million over five years, starting in 2024, to deliver 10,000 “well-located” and energy-efficient homes with the states and territories set to bump that number up by 10,000 more, taking the deal to 20,000.

Funds allocated in the budget will bridge the gap between market rents and rents for social and affordable housing.

“This will be delivered through an ongoing funding stream to help cover the gap between market rents and subsidised rents – making more projects commercially viable.”

But where do the 1 million homes come into the picture; I hear you ask?

Well, that's where the government hopes to tee up private-sector stakeholders like superannuation funds to make substantial investments, along with the residential development, building and construction sectors.

“Most of this supply needs to come from the market, not the government,” Federal Treasurer Jim Chalmers said.

Mr Chalmers said he wants “more Australians to know the security of decent housing and more Australians realising the aspiration of homeownership.

“It’s more important than ever that we work together to ensure there is an adequate supply of affordable housing where it is needed – close to jobs, transport and other services.”

The treasurer also said the regions around Australia would not miss out, with the project spanning beyond major metro areas.

"We need people to be able to live near where the jobs are," he said.

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