The State of the Housing System 2025 report published on 21 May 2025 by the National Housing Supply and Affordability Council (NHSAC) highlights that for many Australians securing a safe affordable home is becoming impossible.
Housing affordability has continued to decline and a shortfall in the supply of new homes in 2024, compounds an issue that’s been decades in the making. The report presents a stark reminder to us all that Australia’s housing system is in crisis.
Housing Trust CEO Amanda Winks said “At its very core this is a human issue, and the report speaks to this. We’re seeing more people turning up to homelessness services, more people on social housing waitlists and more people living in housing stress than ever before.
“The report shows a clear picture of the need for housing and five key priority areas to address it. We are encouraged to see the report prioritising the focus on investing in social and affordable housing as well as continued efforts towards making sure renters get a fair go. This not only supports our most vulnerable community members, but also helps take pressure off the rest of the system.”
The report sets out five priority areas for reform to improve Australia’s Housing System:
• Increasing investment in social and affordable housing working towards a goal of one in ten homes being social or affordable
• Improving construction sector capacity and productivity
• Applying best practice principles to planning systems and making more land available
• Supporting better outcomes for renters
• Ensuring the tax system supports housing supply and affordability
Across the region, nearly 4,000 applicants wait for an offer of social housing, and there are tens of thousands living in housing stress. In the Wollongong and Shellharbour Local Government Areas (LGAs), less than 15% of rentals are affordable for low-income households, highlighting the pressing need for more social and affordable rental housing.
“We often talk about the market, or the housing crisis, but we need to raise our view to one that is about a healthy housing system for everyone. It’s about the basic right to shelter, and that shelter needs to be adequate. We know that providing safe, secure, and affordable homes is the foundation to better social, health, wellbeing, educational and justice outcomes.
“We are now at a point that has been in the making for decades, which requires long-term sustained effort. While progress is being made, we need a balance of patience and urgency to deliver.” Said Ms Winks
Ms. Winks, who also serves on the Board of the Community Housing Industry Association (NSW), reiterated the community housing sector’s call for a long-term (10 or 20 year) legislated national housing and homelessness plan. The plan’s success hinges on non-partisan support to ensure continuity beyond political cycles. Additionally, and as supported by the report, the sector advocates for one in ten homes to be designated as social or affordable, alongside consistent, and reliable funding to enable delivery.
“The report does contain some positive news, including signs that the Housing Australia Future Fund and State planning reforms are starting to take effect. Additionally, we are really seeing positive engagement with our local Council’s as they look to include affordability as a key element of local housing strategies. There has been a slowing in the rise of house prices and rents, although both still outpace income growth significantly, meaning that affordability continues to decline.
“There is no doubt that the economic environment remains challenging. This impacts the feasibility of building homes. Several factors contribute to this, including construction costs, financing, interest rates, and labour shortages.
“The human story behind the numbers in this report, is that people are making the choice to skip meals or go without other important things just to keep a roof over their head. A commitment to sustained action is the only way to ensure that we can create a housing system that meets the need we can so clearly see. This is an issue that is critical for the entire nation” said Ms Winks.
