Australia’s housing targets are back in the spotlight. As the government works to achieve its ambitious target of 1.2 million new homes by 2029, building approvals are on the rise.

This momentum is expected to continue, with future interest rate cuts by the Reserve Bank likely to further accelerate approvals.

On the surface, this might sound like a step in the right direction. But industry experts are raising concerns about whether the construction sector can deliver on these newly approved homes. They warn that unless key issues are addressed, the country may fall short of its housing goals.

So, what are the challenges currently facing the construction industry—and how can they be overcome?

What are the issues?

Increased construction times

One of the most pressing challenges is the extended time it now takes to complete residential building projects. Over the past year, the average time to build a unit block has blown out by ten months. Townhouses and detached homes are also taking longer, with build times increasing by around three months. These delays are largely due to pressure on the sector’s limited resources.

Rising costs

Although construction costs have eased since their pandemic-era peak, the growing demand for new homes could see prices climb once again. Many in the industry warn that without relief—particularly in the form of additional labour and materials—costs could re-escalate. This would put further strain on both builders and homebuyers.

Concerns about build quality

There are also fears that the push to meet housing targets quickly could lead to a drop in construction quality. During the 2019 housing boom, many new builds were found to contain serious defects. These included flammable cladding, water leaks and structural flaws. Experts caution that in the rush to build new homes care must be taken to ensure that quality is not compromised.

What needs to be done?

Industry leaders agree that the most urgent issue is the shortage of skilled trades labour. Australia simply doesn’t have enough qualified tradespeople to meet current and future demand. This is particularly evident in key trades such as carpentry, electrical work, and plumbing.

Housing Industry Association chief executive Simon Croft estimates that Australia is currently short by around 83,000 tradies. This is a gap that must be closed if the nation is to stay on track with its housing targets.

Of course, finding extra construction workers isn’t always easy. To ease the pressure, adopting more efficient construction methods—such as prefabrication—can help improve construction productivity and make better use of the existing workforce.

In addition to labour shortages, infrastructure bottlenecks are also slowing development. According to the Master Builders Association, many housing projects are being held up by the lack of essential services such as sewerage systems and road access. Addressing these logistical barriers will be critical to boosting construction output.

Looking to start a career in construction—or take your next step?

With demand for construction workers at an all-time high, there’s never been a better time to explore a career in the construction industry. Whether you’re just starting out or looking to advance your existing career, Construction Resumes is here to support you.

We offer expert resume writing services tailored specifically to the construction sector, as well as professional LinkedIn profile assistance to help you stand out in a competitive job market. Whether you’re an apprentice, a qualified tradie, or a site supervisor or want to become an electrician, we can help you land your next opportunity and take the next step in your career.

Article References

Terzon, E (6 August 2025) ‘Cotality warns building industry cannot keep pace with building approvals in race to fix housing crisis’, ABC News, accessed 7 August 2025.