Builders say there are "green shoots" appearing in the rate of homes being built across Australia, but current construction remains well short of the target.

As the industry chases the government target of 1.2 million new homes over five years, planning reforms, falling interest rates and the expansion of the federal 5 per cent Deposit Scheme are all boosting business for builders.

But industry insiders and experts have told ABC News a combination of planning delays, skilled labour shortages and land prices stands in the way of solving Australia's housing crisis.

The federal government has said its effort to build more homes is "bearing fruit", with the Bureau of Statistics reporting a 12 per cent rise in dwelling approvals in September, up close to 30 per cent from a low point in Feb

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