More than 21,000 new homes to be delivered in latest round of Albanese government’s $10bn housing fund

The Albanese government will deliver 21,000 new social and affordable homes in its largest tranche yet of the $10bn Housing Australia Future Fund, despite less than 1000 homes having already been constructed.

By the end of the third round, the HAFF will have established agreements to build 40,000 new homes by mid-2029 – with a target of 55,000 homes delivered in-full – according to the Commonwealth government.

The third round of funding is expected to open in late-January, and provides concessional loans and grants to community housing providers at reduced rates, as well as to state and territory governments.

Housing Minister Clare O’Neil said all Australian governments “have to build”.

“After a decade of dithering under the Coalition and relentless opposition in the parliament, the Housing Australia Future Fund is building,” Ms O’Neil said.

“More homes. More speed. More scale.”

Ms O’Neil said the Albanese government was supporting social and affordable homes “in every corner of our country”.

More than 100 applicants received funding under the first round of the HAFF, including providers such as Anglicare, Housing First, and Uniting.

The third round will include the introduction of a new regional and rural component.

A dedicated funding stream will also be made available for projects delivered by, or in partnership with, First Nations housing organisations.

A tenancy target of 10 per cent First Nations renters has also been set under the third round, as well as an accelerated application process and new delivery and co-investment partnerships with the sector and states and territory governments.

Only 889 homes built so far

The Albanese government hopes by offering concessional loans under the HAFF, it will reduce the borrowing burden on providers which is slowing down development.

But, officials revealed during Senate estimates on 889 homes have been constructed so far following the first and second funding rounds.

CEO Scott Langford denied accusations the HAFF was purchasing homes.

He told Senate estimates providers were open to develop homes “in their own right”.

“Or they can contract with a developer for a new home at various points in development cycles, such as pre commencement or during construction,” he said.

The former Coalition built 373 social and affordable homes over almost a decade in government.

The Albanese government hopes to build 1.2 million homes, including those under the HAFF, by mid-2029.

But, with 2025 coming to a close, state and federal governments continue to struggle to meet that target.

Housing Australia, which is managing delivery loans under the HAFF, has reportedly also suffered from a recent staff exodus.

Chair Carol Austin resigned from Housing Australia last month, stating the “time was right to hand over to a new chair”.

The HAFF seeks to deliver 55,000 social and affordable homes which are rented to low-income earners at a lower proportion of income, as well as affordable homes made available to qualifying key workers at below-market rates.