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Just over a year ago, I attended our HIA Kitchen & Bathroom Awards in Perth. HIA’s Western Australian president, Tony Ricciardello, stood before the crowd. With 35 years in the industry, no-one could attest to his experience and the value of his perspective.
‘It’s never been like this before. It’s the worst it’s been. All the homes you see tonight would’ve had contracts signed during a time of chaos. You were committed to building these homes right in the middle of the eye of the perfect storm.’
He listed challenges that would be familiar to most: massive price increases, material shortages, skilled labour struggles, extended build times, client demands, fixed price contracts, and negative sentiment from media and consumers. And, of course, the knock-on effect – coping with it all financially, physically and psychologically.
It was a powerful, astute summary of the past few years. Our industry has always been one of resilience and purpose. Against adversity, we’ve remained connected, bonded and supportive. At the core, you are innovators and creators but battle-scarred.
In 2024, I spent time getting back to basics, hearing your stories, learning from your experiences and making sure we showcase your ingenuity. Face-to-face is the preferred method for our team and me — as often as possible. From an advocacy perspective, there’s a long overdue change afoot in late 2024.
Politicians at all levels of government recognise the significant issue of housing supply. While it’s a complex issue, it’s a win on many levels. In the past, the conversation on housing has been about restrictive practices, increased planning regimes, and greater national construction code requirements. This had a lot to do with holding supply back and more about buyers and investment. All this did was push prices up and make rental queues longer.
Quite simply, recognising that we need to build more is an amazing outcome. Making sure this is discussed at federal and state levels is essential. Recognising that the National Housing Accord establishes that collaboration between the federal government and the states holds a key to solving the problem.
The reaction to the current housing shortage has encouraged people to look at alternatives to planning regimes – a less linear approach. Many are investigating broader solutions outside of greenfield options. When the new homes target was initially set at one million, our consensus was that it sounded ambitious.
When another 200,000 was added, our reaction was, ‘Let’s keep this figure front and centre and in focus’. It helps with the narrative that unless we build this many, we will never build enough. I don't think so, but at least we’ll know that a whole nation now knows we're falling short. A secondary win for our industry is the recognition of the skill shortages.
There’s currently more discussion around encouraging people into the industry and elevating vocational careers over other post-secondary options. Those conversations have always been there, but the vigour around them is now present. Regarding skills, the topic of skilled migration is a focus.
The conflicting question is, why would we bring more people into the country we can’t house? The reality is we will not get the skills to build the homes we need just through the apprenticeship system. One change we are still advocating is a visa system suiting skilled labour coming into the country, recognising subcontracting. We must also acknowledge skills comparable to those from countries such as the UK and Canada. We need to do better at promoting options to travel to Australia and pose fewer hoops to jump through.
Going into this next federal election, we expect housing, and the cost of living will be the main issues. House prices continue to rise, and people are queuing to secure rental accommodation. Some people who had never been homeless now can’t find a place to call home. Meanwhile, people considered essential workers, such as teachers and doctors, are prevented from living where they are most needed because of limited access to affordable housing options. Young people wanting to buy their first home are being priced out of the market.
Following the end of the home builder incentive, there’s a widespread hesitancy toward reintroducing similar measures. Previous discussions have centred around negative gearing, investor penalties, and concessions for first-home buyers. As we look ahead, housing affordability remains a complex and sensitive issue.
Politics is important but no more than the people — the individuals in our industry are at the core of everything we do. An example is Oliver Burnell who won the 2024 HIA Jim Brookes Australian Apprentice award. This followed Beth Mercieca, the 2023 apprenticeship winner, who’s grown into her space as a strong part of our future.
I had the pleasure of attending our regional awards in the Hunter in 2023. The dynamic firm, Evolving Construction, which won the region’s Home of the Year award, typified so many of you. Their humility, how much it meant to them, how they loved and valued their team, and their relationship with their client was inspirational. They’re just one example of our community.
I am immensely proud when our team talks to you, shares insights, and collaborates – one-on- one, regionally, in the public space, at events and on the stage. I want us to be able to show the media, the government, your current and future clients, and most importantly, you – our members – how much depth and breadth we have.
First published 28 November 2024