Australia’s government has set an ambitious target to deliver 1.2 million well-located homes by 2029, under the National Housing Accord—a compact across all levels of government to unlock supply and enable infrastructure. Albeit a necessary foundation for livable, affordable communities, the accord’s success will hinge on effective execution.
On any given evening, an estimated 122,000 people experience homelessness across Australia. Meanwhile, essential workers (teachers, nurses, police, caregivers) are increasingly priced out of our major cities. Recent analysis by the University of Sydney found that early-career essential workers cannot afford a median-priced home in any local government area of Greater Melbourne or Greater Sydney; rising rents compound stress and lengthen commutes. National rental affordability surveys tell the same story, with Anglicare Australia’s 2025 Snapshot showing that fewer than 1 percent of listings are affordable for a full-time minimum wage worker.
Australia’s population is projected to grow from 27 million to 31.3 million by 2035. At the same time, the number of Australians age 75 or older will surge from 2.1 million to 3.2 million, heightening demand for age-friendly and accessible homes and neighborhoods. The 2025 ULI Australia Conference was set against this demographic backdrop.
Resultant trends are on display throughout Australia’s cities. Hybrid work is stabilized and expected to persist, reinforcing demand for local amenities and everyday convenience in suburban and middle-ring communities, as well as well-connected regional areas. Many families, for example, have relocated to such places as the Central Coast, 40 to 60 miles (65 to 100 km) from Sydney’s central business district.
Virginia Anderson, regional head for SJ Group in Australia and New Zealand, observed during her presentation that a greater variety of family types influences today’s demographic mix. Rising levels of separation and divorce, single parenting, blended families, and adult children delaying independence all contribute to the growth of multigenerational households—ones formed by a combination of choice and necessity.
Throughout the conference, one message became clear: Social shifts are reshaping demand, and successful projects emerge from the alignment of market forces, community values, and government leadership. Meeting the accord’s target is necessary but not sufficient by itself. Australia must create places that people genuinely want to live in and can afford, places that will endure—with resilient design, diversity of choice, and trusted delivery that integrates density with transport, green space, and social infrastructure.
Housing Australia Future Fund
Australia’s social housing makes up only about 4 percent of all households, a level that the Australian Housing and Urban Research Institute notes has fallen from 4.9 percent in 1981 and now sits well below that of many comparable countries. High‑income nations with similar GDP per capita—such as the Netherlands (29 percent), Austria (24 percent), and Sweden (17 percent)—maintain far larger social housing sectors.
Launched in 2023, the Housing Australia Future Fund (HAFF) is the country’s largest public/private housing program, backed by A$10 billion (US$6.63 billion) from the federal government. Alongside the National Housing Accord Facility, HAFF targets 40,000 social and affordable homes over five years through grants and concessional loans by fostering partnerships with community housing providers, states and territories, developers, and institutional investors.
Michael Camerlengo, executive leader for clients and capital at Housing Australia, noted that the National Housing Accord Facility and the first two rounds of HAFF approved 279 projects totalling 18,650 homes. A third round of HAFF is expected to open in January 2026. These projects employ diversified financing structures and are selected for being well-located, cost-effective, and deliverable at pace. In just 14 months, A$14 billion (US$9.27 billion) has been allocated—averaging an unprecedented A$1 billion (US$663 million) per month and reflecting strong investor appetite domestically and internationally.
Camerlengo closed his keynote with a call for industry collaboration to deliver generational benefits and lasting change for Australian communities.
Private sector delivery
Industry leaders underscored the private sector’s critical role in expanding affordable housing. A panel discussion highlighted developer contributions, including Stockland’s appointment to deliver the Waterloo South renewal precinct in Sydney. Peta Carruthers, Stockland’s head of capital solutions, noted that 50 percent of the 3,100 apartments will be delivered as social and affordable housing. Global property developer Third.i Group also showcased its Crows Nest over-station development, which will include 60 affordable housing units within an A$1 billion (US$663 million) precinct.
Land use challenges
Australia’s growing adult populace is being met with a slowing housing supply constrained by land use. In major capitals, most well-serviced land within 18 miles (30 km) of the central business district remains locked in low-density zoning. Anderson noted that capacity exists but only if land is used more efficiently. With 80 percent of land in such proximity to the Sydney CBD zoned low-rise, adopting Toronto’s density could unlock an extra 250,000 homes within just 9 miles (15 km).
Planning reform
In 2024–2025, Sydney and Melbourne have experienced sweeping reforms to promote greater diversity of housing in well-located areas—through the Transport-Oriented Development and Activity Centre policy programs, respectively. In Sydney, a complementary Housing Pattern Book provides architect-designed typologies for low- and mid-rise housing and a fast-track pathway to reduce approval times and holding costs. The New South Wales government has also established a Housing Delivery Authority to assess high-yield residential projects at the state level, thus bypassing local councils.
Emerging asset classes
New housing models are rapidly gaining traction, which reflects changing demographics and evolving lifestyle preferences. Senior living and land-lease communities are supporting downsizing, shared amenities, and low-maintenance living. In a land-lease community, residents purchase their home but lease the land it sits on, reducing upfront costs and freeing equity while providing secure tenure for people age 50 and older.
Other models reshaping the market include co-living that caters to younger renters—among them, working holiday visa holders. Likewise, build-to-rent (BTR) products are emerging from social shifts to provide high-amenity and professionally managed homes for Australians looking for alternatives to home ownership. Although relatively new, and gaining traction particularly in Melbourne, BTR remains at the premium end. It offers a high level of amenity and services, such as a concierge, coworking spaces, gym facilities, dog-walking, and a calendar of events—all reflected in the rental cost.
Toward livable futures
Housing delivery is no longer about supply alone. It’s also about choice, resilience, and livability, all enabled by financial and approval mechanisms that deliver at speed. Although Australia’s housing system is under immense pressure, solutions across policy, planning, funding, design, and delivery mark a path forward. Government is reimagining partnerships to unlock supply; industry is embedding social and environmental outcomes; and communities are shaping projects through active engagement and a vocal desire for meaningful change.
The challenge is not simply numbers but also quality. Homes must remain affordable, adaptable, and resilient, supporting flexible work, diverse households, and climate extremes. When people and amenities are centered, density becomes something communities can embrace.
Meeting this challenge demands bold policy, attractive investment settings, and genuine collaboration. In the wake of significant reform, we are beginning to see these things emerge.
