Building costs continue to rise, adding pressure to Australia’s housing supply.

CoreLogic’s Cordell Construction Cost Index (CCCI) shows that the cost of building a home increased by another 1% in the third quarter of 2024, potentially adding thousands to overall costs.

CoreLogic economist Kaytlin Ezzy notes that recent completion rates aren’t meeting Australia’s housing targets.

In the year to June, 176,000 dwellings were finished—26.6% below the annual target of 240,000.

“While 250,000 homes remain in the construction pipeline, slow new dwelling approvals indicate a likely shortfall of projects once the backlog clears,” Ezzy explains.

The Business Council of Australia is calling for a major overhaul of housing approval processes to improve supply.

They suggest introducing council “report cards” to track the time taken for project approvals.

They also recommend giving state governments authority to remove planning powers from councils that consistently underperform and allowing them to approve significant housing projects.