Home Property Australia Chief Executive | Smarter incentives, more homes

Chief Executive | Smarter incentives, more homes

  • March 19, 2025
  • by Mike Zorbas
Building those 1.2 million homes could save Australian renters an average of $90 a week.

We need to double down on creating the commercial, industrial and residential assets our growing cities are crying out for.

Better and faster planning outcomes? A no brainer.

The $3 billion of federal government carrots for states that hit national housing targets and sparking planning reforms around the country? Warmly welcome.

1.2 million well-located homes by FY2029? We are dreaming.

That is according to our Mandala Partners report, Smarter Incentives, More Homes.

Yesterday, we shared with media around the country that we face a shortfall of 462,000 well-located homes by 2029. Important to note the projected shortfall is not necessarily a drop from the National Housing Supply and Affordability Council’s 2024 projections that showed a 297,000 home shortfall, rather based on a different methodology. For the policy wonks, the Mandala method is at page 50 for your enjoyment.

However you measure the housing gap, we also underscored the huge opportunity. 

Forget $300 of energy relief. Building those 1.2 million homes could save Australian renters an average of $90 a week.

The pathway? A new improved New Homes Bonus scheme with added building power (cost <0.5 per cent of the Federal budget):

  • Increase the total scheme value to $6 billion and ring-fence any unspent funding for future housing supply initiatives

  • Refine the scheme by bringing forward payments and extend its duration to seven years, maintaining the annual 240,000 home target. This will enable jurisdictions to undertake broader planning reforms

  • Strengthen transparency through clear public reporting on progress and formally share best practice between jurisdictions

  • Establish a Housing and Planning Sub-Committee of Cabinet and consider all available levers to support housing supply, including demand side in markets like Victoria that. 

Next week: look out for our Federal Budget member alert on Tuesday night