The ACT is not on track to meet its housing targets due to declining construction activity and labour shortages, industry groups and the ACT Greens say.
ABS data shows the ACT will fall behind its National Housing Accord target by 11,200 homes, Master Builders ACT said. Only 427 new dwellings began in the March quarter — a 67% decrease compared to the same time last year. Detached house commencements fell by 30.7%, medium to high density projects by 74.4%, and new dwelling completions by 33.1%.
A draft Pegasus Economics report commissioned by the ACT Legislative Assembly estimates committee found that labour shortages could undermine the government’s target of building 30,000 homes by 2030, the ACT Greens said.
“The current economic landscape, with low consumer confidence, delays in planning approvals, and extended build times, has created a challenging environment for construction,” Master Builders ACT CEO Anna Neelagama said. “This is all compounded by a need for major investment in skills and training. While Master Builders ACT recognises the recent commitments from the ACT government in this area, more action is needed if we’re to get back on track.”
ACT Greens leader Shane Rattenbury MLA called for a government-owned housing developer.
“If the government is serious about building affordable housing in Canberra — and I stress affordable — then it should be leading the charge by hiring and retaining its own workforce to build it. Relying solely on the same private market that caused the housing crisis to fix the housing crisis is a recipe for disaster. This is the same sector that drove prices up in the first place–and now we’re kidding ourselves that they’ll fix it.”
The MBA disagrees with the Greens’ proposal.
“The answer to the current housing crisis is not for Government to be a builder or developer,” Ms Neelagama said. “It is for Government to enable the right settings to allow the ACT building and construction industry to get on with the job of getting more homes on the ground.
“This includes a fast-tracked and improved planning approvals system, reduced regulation and red tape, and funding more skills programs for the 26 construction trades that are in shortage. The ACT building and construction sector stands ready to build, the role of Government is to make this as productive, safe and affordable as possible.”
An ACT Government spokesperson said: “The Government is supporting the delivery of more homes for Canberrans where and how they want to live. The Budget invests $145 million in a range of housing measures which addresses housing supply from all sides.
“This includes the developing the future construction workforce, with an increase in training subsidies to 90 per cent for carpenters, plumbers, tilers, bricklaying and other critical housing construction trades.
“Previous tightening of monetary policy through the raising of the official cash rate by the Reserve Bank of Australia has had an impact on the construction market in the short-term. However the budget outlook shows that inflation is easing and further interest rate cuts are expected.
“The ACT has a robust housing construction pipeline which will support supply in the coming years. The stock of dwellings under construction remains elevated, noting it has fallen in recent quarters, albeit off a high base. Dwellings approved but not yet commenced also remain strong. As this stock of approvals is worked through, it is anticipated that dwelling approvals will start rising, ensuring the continuation of a healthy pipeline of building activity. This will be supported by easing capacity constraints and a lower interest rate environment in the coming years.
“This optimism is evident in Development Application (DAs) activity data which indicates the number of DAs lodged in the Apr-June 2025 quarter is greater than the previous quarter and comparable to the equivalent quarter last financial year.
“Furthermore, there has been a steady increase in the number of DAs lodged for single residential projects over the June quarter, with 35 lodged in June 2025 – the highest for the 2024-25 financial year.
“There has also been an increase in the number of mixed-used DAs in this financial year compared to the previous, demonstrating appetite for both residential and commercial projects.
“The Territory Planning Authority has been able to keep up with this demand, with 81% of DAs decided within the legislated timeframe in June 2025 and the median number of days in deciding a DA remaining steady since the new planning system commenced in November 2023.
“As interest rates begin to ease, real wages grow and our population expands, building activity is forecast to increase over the forward estimates.”
Petition: Keep the Rent Relief Fund
A petition has been launched to keep the Rent Relief Fund, which ended on 4 July. Set up in 2023, it was not funded in this financial year’s budget.
The petition calls for the government to fund the Rent Relief Fund “as a carefully targeted, means tested, and highly effective source of cost-of-living relief and housing support for the most vulnerable people within our community”.
The Fund paid up to a month’s rent for households in need, which community representatives said helped renters stabilise their housing and connect with support services. In one case, it allowed a single mother recovering from financial abuse to maintain her tenancy and her custody of her child.
The ACT has the highest rate of rental stress for Commonwealth Rent Assistance recipients in Australia — more than a quarter spend half their income on rent, and half spend more than a third. Anglicare recently found that the ACT was the most unaffordable jurisdiction for low-income households, while 5,400 households need social and affordable housing, but wait up to five years for public housing.
The community sector believes the $1.7 million annual cost of the fund is modest but impactful, and that a short-term accommodation levy would generate $3.8 million, enough to sustain the program.
The petition is sponsored by ACT Greens leader Shane Rattenbury and supported by Care Financial Counselling.
“At Care, the Rent Relief Fund proved to be a critical part of providing wraparound support to vulnerable private renters,” CEO Carmel Franklin said. “The loss of the Rent Relief Fund has created a gap in the range of supports our most vulnerable households need to help keep a roof over their heads in Australia’s least affordable private rental market for people on a low income.”
Mr Rattenbury said: “This Labor Government says it’s replacing the rent relief fund with ‘more targeted supports’—but really it’s just spin. In reality, what they’re doing is cutting support for renters doing it tough in an unaffordable housing market…
“Keeping this fund going costs just $1.7 million a year — a tiny amount compared to what this government hands over to the gambling industry. This is small-scale funding that delivers a huge impact for those who need it most.”
Anti-Israel protest
A three-day protest will take place in Canberra next week: to coincide with the opening of federal parliament, organisers will call on the government to impose sanctions on Israel over alleged war crimes in Gaza.
The “national convergence” will run from Sunday 20 to Tuesday 22 July, and will include rallies and marches to the Israeli and US embassies.
Activist groups including the Australia Palestine Advocacy Network and Democracy in Colour claim the Australian government is complicit in Israel’s actions by failing to impose boycotts or sanctions.
Visit sanctionisraelnow.com for more details.
