The State of Australia's Housing

New homes got fewer approvals in April and are down almost 7 percent compared to last year, staying close to a 12-year low.

This means it's getting tougher for people looking to buy or rent homes. Even though the government is trying to make more homes available, the slow approval process is making things harder.

House prices went up nearly 9 percent in the last year, and rents hit an all-time high. The government wanted to build 1.2 million new homes in five years, but it seems like they might not make it. While approvals for standalone houses are growing a bit, approvals for apartments and townhouses are dropping fast. This could mean trouble ahead for the housing market.

Costs for building homes have gone up but not as fast as before, though it's still pricey. Some areas of construction are seeing less pressure, but overall costs are high, making it tough for new projects to make financial sense. Fewer people are buying homes before they're built, and competition for materials and workers with other construction projects is making things harder.

With fewer new homes being built, rents are expected to keep rising, possibly by more than 8 percent each year until 2025. This will make it tough for renters and could affect other parts of the economy, keeping prices from going down.

There might be a small boost in construction activity soon as states start using the updated National Construction Code, trying to finish projects before stricter building standards kick in. Things might pick up more in 2025 with lower interest rates and help from the government.