Australia to build 1.2 million new homes under new housing supply plan

Australia will build 1.2 million new homes in the space of five years as part of a new plan agreed to at national cabinet aimed at tackling the nation's housing crisis.

Prime Minister Anthony Albanese said increasing supply was the key to addressing the housing and rental crisis, adding that the Commonwealth had committed $3 billion in incentivised payments for states and territories that build more than their allocated share of homes.

"This is an initiative that shows how serious we are as state and territory governments across the political spectrum as well as the Commonwealth, understanding that supply is the key," Albanese said.

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"That's the key to putting downward pressure and assisting renters."

The 1.2 million homes is an extra 200,000 on top of the 1 million agreed to by the states and territories last year.

One policy that wasn't included in Wednesday's announcement was a rent freeze or cap in line with what the Greens have been calling for in their negotiations with the federal government over its signature housing policy, which is yet to pass the Senate.

"You cannot say you support increased housing supply and vote against the Housing Australia Future Fund," Albanese said, adding that "the idea that you just have a rent freeze... we believe that will make it worse (for renters)".

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That didn't sit at all well with the Greens, who indicated today's announcement won't stop them from continuing to block the Housing Australia Future Fund, which, without support from the Coalition, requires the minor party's backing to pass parliament.

They have repeatedly said they won't back the legislation unless the federal government works with the states and territories to introduce rent freezes or caps.

"From now on, every unfair rent increase is Labor's fault," Greens leader Adam Bandt said.

"Labor has every seat bar one at national cabinet, and it's now clear Labor's policy is for unlimited rent increases."

"Unlimited rent increases once a year are still unlimited rent increases," housing spokesperson Max Chandler-Mather added.

National cabinet did agree to a plan to strengthen renters' rights and better align legislation around the country.

However, many of the principles of that plan – such as removing no-grounds evictions, limiting rent increases to once per year, and banning rent bidding – had already been committed to or introduced by state and territory governments.

One original element of the plan involves looking at better regulation of short-stay accommodation, such as Airbnbs.

"One of the things that we looked at was the consideration of what the impact of short-term accommodation is having on rentals," Albanese said.

"I know, in an electorate like mine, it's having a substantial impact. And just having a look at that, considering what the implications are for that, is something that's worthy of doing.

"We know that there is no simple one-day, one-week, one-month solution to dealing with housing issues that are about a long-term supply issue.

"But we know that we're all prepared to look at the full suite of reforms across the housing sector."

National cabinet also agreed to the national planning reform blueprint, which Albanese said would include "planning, zoning, land release and other measures to improve housing supply and affordability".