The current housing shortage is a result of both strong demand and an insufficient supply of new homes. However, there are some suburbs seeing a high volume of building approvals.
The volume of building approvals nationally is at a near decade low for houses and units, at a time of rapid population growth and a critical need for additional housing.
This is likely contributing to ongoing supply shortfalls, affecting the affordability of homes and tightening the rental market further.
But for residents in certain areas, supply is set to improve with a significant number of new homes approved for construction.
To determine where they are, we looked at the local government areas (LGA) where dwelling approvals were the highest during the second half of 2023.
| Local Government Area | City or region | Approvals |
| Casey | Greater Melbourne | 5,424 |
| Melton | Greater Melbourne | 4,668 |
| Logan | Greater Brisbane | 4,208 |
| Wyndham | Greater Melbourne | 3,830 |
| Greater Geelong | Rest of Vic. | 3,252 |
| Brisbane | Greater Brisbane | 3,154 |
| Sunshine Coast | Rest of Qld | 3,044 |
| Whittlesea | Greater Melbourne | 2,942 |
| Ipswich | Greater Brisbane | 2,844 |
| Hume | Greater Melbourne | 2,832 |
The city of Casey led all LGAs in terms of houses. From July to December 2023, there were 5,424 houses approved for upcoming development. This exceeded the pre-pandemic figures in 2019 (4,702) and 2022 figures (3,334) over the same period, reflecting a promising upward trend in supply in this area.
The city of Melton in Melbourne and and city of Logan in Brisbane were not far behind with respective approvals of 4,668 and 4,208 in the second half of 2023.
A high volume of houses were approved in Greater Geelong as well.
While the level of approvals are higher compared to 2022 in these areas, a sign of some improvement, they are below or equal to 2019 levels which indicates that supply is likely falling short against the heightened level of demand.
| Local Government Area | GCCSA | Approvals |
| Brisbane | Greater Brisbane | 3,050 |
| Melbourne | Greater Melbourne | 2,208 |
| Gold Coast | Rest of Qld | 1,726 |
| The Hills Shire | Greater Sydney | 1,670 |
| Newcastle | Rest of NSW | 1,362 |
| Port Phillip | Greater Melbourne | 1,276 |
| Stonnington | Greater Melbourne | 1,138 |
| Parramatta | Greater Sydney | 1,108 |
| Glen Eira | Greater Melbourne | 976 |
| Maribyrnong | Greater Melbourne | 960 |
A similar story is evident when we look at areas with the most unit approvals.
In the latter half of 2023, the city of Brisbane had 3,050 units authorised for construction. This surpassed other LGAs and exceeded 2022 figures (2,650) but there were slightly fewer approvals than in 2019 (3,282).
There were also a high number of approvals in the city of Melbourne and city of Gold Coast, yet fewer approvals than 2019 and 2022, reflecting a slowdown in the construction of new homes in these areas.
In contrast, the city of Newcastle has had a big boost of units given the green light for development in recent years. There were 1,362 approvals in the latter half of 2023 which was well above 2019 (234) and 2022 (928) levels.
Several LGAs with the most new dwellings approved are seeing continued growth in the number of approvals. This is positive news for people residing in these areas.
However, the overall situation remains a difficult one. Due to the rise in material, labour and financing costs, new dwelling approvals are below the levels required to meet the growing population.
To alleviate supply shortages, more action will need to be taken to fast-track the construction of new homes, particularly in areas where demand is high.
