‘Stop messing around’: plan to build 21,000 new social homes draws fire – realestate.com.au

New funding to help build 21,350 new social and affordable homes across Australia has become available in the latest effort to help vulnerable people who rely on the country’s stressed social housing system.

Federal government-backed Housing Australia has opened the third round of funding from the $10 billion Housing Australia Future Fund (HAFF) to deliver the remaining homes pledged to meet the national target of 40,000 new social and affordable homes by 2029.

It is the largest round to date, having financed a pipeline of 18,650 new homes during the two previous rounds, but HAFF has come under fire for not delivering the promised new social housing quickly enough.

Greens housing and homelessness spokesperson Senator Barbara Pocock said the federal government should directly fund social and affordable housing.

“Labor must stop with HAFF, which is too slow and too complex, and stop fueling demand with policies like the 5% deposit changes, which are making the crisis worse,” she said.

“The government must immediately fund social and affordable housing to drive down rents.”

The Albanian government promised the HAFF in the 2022 elections, but it only started in late 2023 after a protracted battle with the Greens. Just under 1,000 homes have been completed, while more than 9,000 are currently under construction.

Housing Australia CEO Scott Langford said the scale and design of the third round provided unprecedented opportunities to deliver long-term outcomes that supported diverse locations and cohorts and addressed acute housing needs across the country.

“From today, Housing Australia is calling on partners to propose housing projects that will deliver safe, accessible and affordable homes and housing security to Australians in need,” he said.

“The momentum we are seeing in the first two rounds reflects real partnerships and a shared determination to expand the supply of social and affordable housing.”

Australian Community Housing, Housing Industry Association and other housing groups have backed the new round of funding.

Greens Senator Barbara Pocock says the federal government must immediately directly fund social and affordable housing. Photo: Hilary Wardhaugh/Getty

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Mark Degotardi, CEO of Australian Community Housing, said HAFF achieved good results through a combination of ambition and results.

“Community housing providers are ready to build and get people into these homes quickly,” he said.

“We will provide not just roofs over people’s heads, but stable homes that help people build lives and strengthen communities.”

Housing Industry Association managing director Jocelyn Martin said the first and second rounds of HAFF funding had attracted significant interest from the housing sector.

“Builders remain committed to increasing the supply of much-needed social and affordable housing,” Martin said.

“It is hoped that through this latest round of funding and the current review of HAFF operations, we can see meaningful improvements to the program and result in fast-tracking this latest round of funding and streamlining the delivery of more homes more quickly.”

It comes as new analysis from the Productivity Commission on Thursday found there were 432,129 social housing units across Australia in June 2025, up from 410,216 in 2016.

The share of households in greatest need who waited more than two years for new public housing fell from 25.5% in 2023-24 to 22.8% in 2024-25.

The Albanian government has pledged to spend more than $40 billion to tackle Australia’s housing crisis, through initiatives such as HAFF, spending on new housing infrastructure, 5% down payment arrangement and the Help to Buy Scheme.

According to the latest figures, there are 432,129 social housing units across Australia. Photo: Jesse Thompson/Getty

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Many households across Australia have faced unprecedented housing and financial stress in recent years due to the cost of living crisis, including rising rental costs.

The latest figures from the PropTrack rental market show that the national average weekly rent was a record $650 in December 2025, reflecting a 1.6% increase over the quarter.

Compared to a year ago, national rents rose 4.8%, equivalent to an additional $1,560 per year. It marks a significant slowdown from the runaway double-digit annual rent growth seen in many parts of the country in 2022 and 2023.