Australia’s housing shortage is intensifying as construction worker shortages, rising costs and higher financing expenses slow the delivery of new homes, putting the government’s 1.2 million-home target by 2029 at risk. Official figures show completed home construction is 27% below the quarterly pace needed to meet the National Housing Accord target. Housing expert Hal Pawson said the construction industry is already operating near its limits, with Sydney facing particularly severe challenges. Industry groups warn Australia could miss its 2029 housing target by roughly 15%. Builders argue that increasing housing supply requires more skilled workers, faster approvals and less regulatory red tape.