Second Round of Queensland’s $2bn Housing Fund Launched

Applications for the second round of Queensland’s Residential Activation Fund have opened, making $500 million available to councils and landowners to fund trunk infrastructure and accelerate residential development across the state.

South-East Queensland’s population is projected to grow by 2.2 million people by 2046, putting pressure on housing supply across the region.

The Real Estate Institute of Queensland’s third quarter of 2025 report recorded a statewide median house price of $895,000—up 12.67 per cent annually—attributing the rise primarily to a shortage of available housing relative to demand.

The fund are part of the government’s $2-billion Residential Activation Fund, established under the Securing Our Housing Foundations Plan, which targets the delivery of a million homes by 2044.

Round 1 committed nearly $1 billion to infrastructure projects in 2025, unlocking land for more than 98,000 homes.

Funding covers essential enabling infrastructure such as water, sewerage, roads and power, with the aim of removing the key barriers that delay shovel-ready projects from proceeding.

At least half of the Round 2 allocations will be directed to projects outside South-East Queensland.

Deputy Premier Jarrod Bleijie said the program was designed to accelerate supply by cutting through infrastructure bottlenecks holding back councils and industry.

▲ Queensland Minister for State Development, Infrastructure and Planning Jarrod Bleijie.

According to the government, housing approval in Queensland rose 11.9 per cent and commencements were up 12.8 per cent.

The National Housing Supply and Affordability Council’s State of the Housing System 2025 report projected Queensland would achieve around 80 per cent of its share of the national housing target—a gap the Residential Activation Fund is designed to help close.

Nationally, 168,050 homes began construction in 2024, well below the 240,000 annual pace required under the National Housing Accord.

Local Government Association of Queensland chief executive Alison Smith said the fund addressed a persistent gap between planning and delivery.

“Infrastructure is often the missing ingredient,” Smith said, adding that round one of the funding had “already proven to be a gamechanger that is helping councils to tackle this infrastructure gap”.