The Australian housing system continues to experience immense pressure. For many Australians, right across the country, securing a home that is affordable, fit for purpose and secure remains challenging, if not impossible. This is a source of significant stress for individuals and households.
A healthy housing system matters for the entire nation.
Access to fit-for-purpose and secure housing is a human rights issue, and one that is essential for an inclusive and prosperous society. As the Australian Human Rights Commission says, ‘The right
to housing is more than simply a right to shelter. It is a right to have somewhere to live that is adequate’.
Failure to provide access to adequate housing is linked to adverse social, health and wellbeing, educational and justice outcomes.
Alan Kohler, writing in the Quarterly Essay, contended that Australia is being divided into those who own a house and those who do not, and between families that have housing wealth to pass on to their children and those that do not. This has profound implications for geographic and generational inequity that is deepening.
In State of the Housing System 2025, the National Housing Supply and Affordability Council (NHSAC or ‘the Council’) presents a sobering view of Australia’s housing system. The deterioration of housing affordability and low levels of new housing supply in 2024 are particularly stark reminders that Australia is still very much in a housing crisis that has been decades in the making.
However, there are signs of slight improvement in parts of the housing system. Growth in housing prices and advertised rents slowed over 2024 and construction costs have stabilised. This is promising news. Additionally, the supply of social and affordable housing is accelerating, reflecting an increase in government investment and initiatives that encourage private sector investment.
These efforts must continue. Even with the recent increase in economic uncertainty, housing must remain a priority. A significant uplift is needed to support Australians who depend on social and
affordable housing for shelter and as a foundation for building their lives and participating in their communities.
The Council acknowledges the work that is underway across the housing spectrum to improve housing outcomes. Navigating the housing crisis was always going to require effort from every part of
the housing ecosystem. We must maintain our collective focus on consistent and coordinated effort. The Council’s vision for Australia’s housing system is clear. Households of all incomes and in all
locations should have access to affordable, fit-for-purpose and secure housing.
Australia needs a better housing system – one that can provide Australians with the homes they need. This means a housing system that can provide home ownership and rental options to all
households, meet the diverse housing needs of the community, and ensure the safety and wellbeing of all Australians.
In this report, the Council outlines 5 key policy areas to prioritise, along with recommendations designed to help move Australia towards a healthier housing system. These are included in Chapter 7, Towards a better housing system.
