The Albanese government’s ambitious housing targets have become increasingly unattainable, as analysis shows approvals slumping well below the required levels.

While about 60,000 promised homes have not been delivered so far, Treasurer Jim Chalmers indicated he hasn't given up on achieving 1.2 million new homes by 2029.

"Our housing target is ambitious, but it's achievable and in the last little while we have seen some welcome progress when it comes to the housing market," he said on Tuesday.

"We have actually made some really good progress in the housing market. But it remains the case that our target is ambitious."

Apartment approvals in August dropped 33.4 per cent to 2,704, marking the second-lowest monthly figure in the past year.

Townhouse approvals fell 19.1 per cent in August

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