The number of apartments that are being built in Australia needs to double to help meet the Government’s target of 1.2 million homes in the next five years, according to the Housing Industry Association.

The HIA Economic and Industry Outlook report which forecasts new home building and renovations activity, says the development of apartments has fallen to almost half of what was being built in 2016.

HIA chief economist Tim Reardon says 95,380 detached homes will start construction in FY2024. The HIA then expects the start of a slow recovery the following year with 97,770 commencements in FY2025, before exceeding 110,000 by FY2027.

It predicts there will be 64,350 units built in FY2024, 78,280 in FY2025 and 93,480 in FY2026.

Much of this growth will be as a result of the positive impact of the upcoming 2032 Olympic Games in Brisbane, according to the HIA, as well as growth in the build-to-rent sector.