Housing supply remains a major issue despite a lift in building approvals in the past month.

Australian Bureau of Statistics figures show approvals are up by 5.1% in September but remain well below the levels of a decade ago.

There were 17,948 dwellings approved during the month.

Real Estate Industry Association of Australia president Jacob Caine says Australia continues to remain in a “structural housing deficit.’

“What that translates into for the average Australian out there looking for somewhere to live is a scarcity of choice, unaffordable prices and greater risk of housing insecurity or homelessness,’ he says.

ABS head of construction statistics, Daniel Rossi, says the September increase follows a fall in August.

The September increase is driven by higher approvals for multi-dwelling units such as apartments, units and townhouses – which are up by 16.6% over September with 6,579 approved.

New South Wales had the biggest rise in apartment approvals in September (1,995) while approvals for townhouses rose by 8.3% (2,792).

Urban Taskforce Australia chief executive Tom Forrest says while increasing approvals are good, it does not necessarily mean more housing will be delivered.

“As the cliche goes, you can’t live in a planning approval. If it is not feasible to build the new homes, the approvals will not result in the new housing we need.’