Housing Australia launches Round 3 to deliver 21,350 new homes

New funding round aims to complete national 40,000-home target

Housing Australia launches Round 3 to deliver 21,350 new homes

News

By Mina Martin

Housing Australia will open Round 3 of the Housing Australia Future Fund Facility (HAFFF) and National Housing Accord Facility (NHAF) in late January 2026, unlocking investment to deliver the remaining 21,350 social and affordable homes required to reach the national target of 40,000 new homes.

Just 17 months into a 60-month delivery window, earlier rounds have already committed 279 contracts, supporting 18,650 homes, with 889 completed and 9,501 under construction.

Round 3 aims to accelerate delivery, bringing together community housing providers (CHPs), state and territory governments, First Nations housing organisations, developers, builders, financiers, and investors.

New funding packages and First Nations support

In Round 3, Housing Australia will offer:

  • funding packages of various sizes to encourage industry partnerships led by CHPs or other eligible applicants
  • partnership opportunities for state and territory governments
  • $600 million in dedicated funding for First Nations housing organisations

An open, on-demand, two-stage application process will support faster decisions. A new First Nations Concierge service will guide First Nations housing organisations through the application process.

Funding will prioritise well-located, high-quality and value-for-money projects capable of delivering homes quickly across metropolitan and regional areas.

“This next round is about accelerating delivery”

Housing Australia CEO Scott Langford (pictured left) said Round 3 is designed to deepen collaboration and speed up supply.

“This next round is about accelerating delivery and deepening partnerships," Langford said in a media release. "We’ve seen momentum building in the first 2 rounds, and now we’re calling on partners to work together to provide all 40,000 homes by 2029. Together, we can create lasting impact on the housing system and provide homes for those who need them most.”

Government consolidates all funding products under HAFF

To streamline access, all social and affordable housing programs administered by Housing Australia will transition under a single Housing Australia Future Fund (HAFF) brand:

  • HAFF – Social and Affordable: combines HAFFF, NHAF, NHIF–Social and Affordable Housing and the Affordable Housing Bond Aggregator
  • HAFF – Crisis and Transitional: rebrand of NHIF–Crisis and Transitional
  • Housing Australia Critical Infrastructure: rebrand of NHIF–Critical Infrastructure

The shift is intended to simplify navigation, strengthen coordination and support engagement with governments and CHPs.

Stakeholders are encouraged to register interest ahead of Round 3, with further details to be released at the December 2025 Market Briefing.

Round 3 expected to ease homelessness pressure

Round 3 is expected to make a significant contribution to homelessness reduction by supplying thousands of new social housing homes. Homelessness Australia CEO Kate Colvin (pictured right) welcomed the announcement.

“After a decade of inaction under the previous government which abandoned the field when it came to homelessness and social housing, the Commonwealth is now serious and committed to making a genuine impact,” Colvin said in a media release.

“With more, we can do more. But we are making genuine headway.”

In 2023–24, 109,557 people sought long-term housing through homelessness services. Only 4,937 secured a home, while 76,688 received neither housing nor a referral.

The 11,000 social housing homes expected from HAFF Round 3 could more than triple the number of people able to be housed.

Of the 280,000 people who used homelessness services in 2023–24, 38% cited financial difficulty, affordability stress or the broader housing crisis as their main reason for seeking support.

“These statistics show that if people could access a low-cost home they can afford, they wouldn’t be homeless,” Colvin said.

“Round 3 represents real homes for real people. These are women escaping violence, older women at risk of homelessness, young people and families doing it tough. These are Australians who deserve a safe place to call home.”

“The Housing Australia Future Fund is working. Sustained investment at this scale is needed to meet the enormous need across the country.”

Round 3 is expected to accelerate construction activity into 2026, supporting broader market supply efforts at a time of elevated rents, tight vacancy, and affordability pressures.

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