2024 HIA Annual Report

On 1 July, the clock started ticking on the federal government’s commitment to build 1.2 million homes. We are pleased that a housing supply target has been set. This recognises that the lack of supply is key to high house prices and the availability of affordable rental accommodation. The target’s simple framework was facilitated to recognise any issues holding the industry back. Simultaneously, HIA’s key message is that we seek a reliable, consistent business environment that allows the industry to succeed and thrive.

An abundance of regulations and red tape, slow planning and approvals, lack of skilled labour and unfavourable business conditions continue to hamper efforts to reach the target. Throughout 2024, dwelling approvals rose in Western Australia and Queensland, but overall commencements were still running at decade lows.

In October, HIA released its All Hands on Deck report. It concluded that we need around 83,000 additional workers across the range of trades to come close to meeting the Housing Accord target. Throughout the year, we continued to advocate to the federal government in support of apprentice and employer subsidies and wrap-around support programs targeting apprentice retention and mentoring support.

In addition to more than 800 apprentices being supported through our Group Training, HIA continued to run successful apprentice mentoring programs in New South Wales, Western Australia, South Australia, Tasmania and Queensland. This encouraged women into trades and offered school leavers an introductory experience to apprenticeships.

We were reminded that the industry must do its fair share of heavy lifting when it comes to encouraging people into the industry. During HIA’s President’s Dinner in Cairns, our DR Dossetor recipient was Brett Schimming, Chief Executive Officer of BuildSkills Australia. He challenged the audience to think about residential construction in a context where we are competing for skilled labour with other industries better placed to offer more flexible work arrangements. His message was that we cannot simply expect more from government; as an industry, we need to do more to compete for workers.

In 2024, HIA Learning trained more than 2000 people. This covered Diploma, Certificates III and IV and Professional Development Programs which were both face-to-face and online. Previous HIA Director Greg Elsworthy was a champion of training and skills development. We recognised Greg’s contribution to HIA by naming the Hunter training facility the Greg Elsworthy Education Centre in his honour.

Another highlight was recognising the accomplishments of our members. BCM Homes from Victoria took out the 2024 HIA-CSR Australian Home of the Year. From a tough field, Tasmania’s Oliver Burnell of Ronald Young + Co Builders won the 2024 HIA Jim Brookes Australian Apprentice Award. These were just two of the amazing homes, people and businesses who were recognised in their region and at the national level throughout the year.

It was our pleasure to announce Colleen May—General Manager of May Constructions—as the 2024 recipient of HIA’s prestigious Sir Phillip Lynch Award of Excellence. Running a successful building business, Colleen is a past HIA Victorian President and has spent countless hours of dedication to the HIA Building Women program. It was difficult to think of a more worthy recipient this year.

The array of programs, events and advocacy work are evidence of a vibrant, active and engaged organisation. However, we can only thrive with the support of our members and staff. We acknowledge the work of HIA’s Board of Directors, our Regional Presidents and Vice Presidents, Chairs of our Service Committees, award judges and indeed, all those who take time out of their busy lives to participate in our regional committees.

HIA employees are working hard across the country to deliver on behalf of our industry and community, and we are proud of their efforts. Given the prominence of their roles with members, we acknowledge the retirement of long-serving staff members Annette Christou, David Bare and Russell Holtham whose experience and wisdom will be missed.

In 2025, there will be a federal election. We anticipate housing will be a core issue for voters. With this in mind, we intend to enter the new year with great optimism for positive change for our industry and to put the success of our members at the heart of everything we do.

Home building activity in 2024 declined compared with the previous year. Housing starts remained low due to challenges with higher interest rates. Construction and land costs resulted in lower housing affordability.

The Association continued to access government stimulus funding, including Completing Apprenticeship Commencements (CAC program). HIA passed 100 per cent of the subsidies received under these programs to eligible hosts. The subsidies greatly assisted with the employment of HIA’s apprentices by providing financial relief to the hosts and encouraging them to maintain their apprentices’ employment. 

During the year, HIA successfully completed training for 167 apprentices under the Group Apprenticeship Scheme. HIA also continued the four-year LAHCfunded apprenticeship and traineeship program across New South Wales. Throughout the year, numerous state government-funded initiatives were implemented, with several scheduled to extend into 2025.

In November 2024, the federal government awarded a $2.0 million grant to HIA to deliver work health and safety advice to the industry. By the end of 2025, qualifying participants can work for the Housing Australia Future Fund and National Housing Accord. 

HIA held several successful and well-supported events across various regions in Australia in 2024. They increased member engagement and delivered an improvement in the business unit’s operating result compared with the previous year. 

During 2024, HIA sold its existing Brisbane property for $7.3 million and purchased new offices in Newstead for $12.5 million. HIA also purchased a new office in Melbourne for $19.2 million, which will be ready for occupation by mid-2025. HIA continues to execute on the long-term policy of owning and maintaining its own property assets to underpin long-term viability. 

HIA's investment portfolio fell from $36.1 million in 2023 to $14.7 million in 2024 after selling investments to buy new properties in Brisbane and Melbourne.

During the year, HIA also achieved improvements in its Business Intelligence reports, which enhanced the availability of data for decision making. There will continue to focus on this area in 2025. 

Net assets at the end of 2024 were $97.0 million compared to $96.3 million at the end of 2023. 

The net increase of $0.7 million results from a $2.4 million operating surplus and a $0.5 million investment gain, offset by a $2.2 million land and buildings valuation decrease. 

The decline in net valuation was due to various factors in the Sydney property market, including rising bond yields, increased debt costs, inflationary cost pressures and higher rental incentives, which reduced projected market yields and hence valuations.

HIA ended the year with $8.8 million cash in the bank and $97.0 million in net assets. This represents five dollars of assets for every dollar of liabilities which mitigates future business risks. HIA is well-positioned to leverage emerging opportunities to build sustainable wealth and to support the expansion of future member services.