Building approvals for homes have risen slightly, but not enough to ease Australia’s housing crisis.

According to the latest Australian Bureau of Statistics data, approvals for houses increased by 0.5% in August, while approvals for apartments and townhouses dropped sharply by 16.5%.

Shane Garrett, chief economist at Master Builders Australia (MBA), says the fall in both detached and high-density dwelling approvals is concerning, making it difficult for the country to meet its housing targets.

MBA CEO Denita Wawn adds that a key challenge is the shortage of skilled tradespeople.

Wawn points to research from the National Centre for Vocational Education Research, which reveals a worrying shortage of apprentices entering the industry and completing their training.

“To solve the housing crisis, we need to significantly boost housing supply, but we can’t do that with a labour shortage,” she says.

“Until we address the workforce issues, increasing building activity will remain a challenge.”