Australia warned of 'ticking time bomb' in new builds as housing target deadline approaches

Australia is racing to build 1.2 million new homes in five years to meet the National Housing Accord target by 2029, but housing experts warn that prioritizing quantity over quality could leave generations to deal with costly defects and energy inefficiencies. Mould, waterproofing failures and structural flaws have become recurring headaches in new builds as the housing push accelerates.

Construction lawyer Bronwyn Weir said the rapid push to scale up housing, driven by population growth, is widening gaps in regulatory oversight and worsening workmanship. "These problems stem from inadequate standards, poor education and lack of competency in design and construction," she said. "These defects often don't present themselves until a few years after construction is finished. The cost to investigate and rectify these kinds of issues can be astronomical... even if there is a builder around to chase, there is a good chance they won't stick around to take responsibility. We need to throw everything at improving independent oversight during construction. This is where we will see the biggest bang for our buck."

Albanese government decisions to update the National Construction Code, due in May, could have addressed many construction issues, but updates were frozen until mid-2029 to fast-track housing approvals. "We can't have a regulator on every site all the time but there needs to be more independent checking and quality control to prevent poor construction practices," she said.

Master Builders Australia welcomed the commitment to reforms aimed at untangling red tape, though officials say the housing shortfall remains a barrier to meeting targets. Chief executive Denita Wawn noted that no state or territory is on track to meet its target as starts lag behind demand. "Our latest forecasts show housing starts fell almost 60,000 short of the Accord's target in 2024–25, and the gap over five years has now blown out to 180,200 homes," she said. "Without urgent reform, the 1.2 million homes goal will not be met. Builders are ready to deliver - but projects are being held back by long build times and higher costs. Reform is the only way to restore capacity and deliver the homes Australians need."

In 2024, an Australian Housing and Urban Research Institute survey of existing housing stock found that 70 percent of households reported quality issues, with the most common defects including wall cracks, mould and plumbing problems. It warned the low quality of housing in Australia is likely to persist as the country aims to build 1.2 million homes.

Analysts say regulatory and industry shifts are needed to close the gap between aims and approvals, and to ensure that construction quality keeps pace with rising demand. Regulators argue more independent oversight and better training are essential to prevent the costly, long-tail defects that can surface years after a project is finished.