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Tackling the housing crisis

Tackling the housing crisis

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Getting shelter over people’s heads and reversing declining rates of home ownership is the main priority for all governments. So, how can they implement this?

Simon Croft

Chief Executive, Industry & Policy

My first experience in the residential building industry was as a 16-year-old in 1999, doing work experience for a boutique builder in Melbourne. Fast forward 25 years, and today in my current role with HIA, I’m asking, are we in a better place now? 

During my career, I’ve worked in nearly all capacities of the industry: onsite as an apprentice and carpenter, oversight as a project and construction manager, building and construction trainer, in policy with the federal government, and now in my current position with HIA. 

Looking at the state of housing and politics in 2024, not much has improved. I reckon we could've solved the 'housing crisis' three times over if we combined all the commentary on what should be done by politicians and so-called experts. 

Notwithstanding, having housing front and centre is a positive outcome as we enter state and federal elections. However, while politicians’ solutions and new announcements sound great, they don’t build homes or get slabs poured on the ground.

 

In some ways, the policy around housing is like a game of snakes and ladders.

 

We start seeing positive green shoots and move forward to success. But the next day – or even the same day – from a different government area, the next move works against that positive move. 

This sends the industry backwards, and all the moves start again. 

Housing affordability is a case in point. I’ve been in many meetings where the discussion starts with: ‘We have ambitious housing targets; we see housing costs going up at record levels and want to put negative pressures on that.’ 

But in the next sentence, the talk turns to new regulations that add complexity, restrict choice, and ultimately add further costs. And guess what: fewer houses get built, and housing affordability gets worse. 

This is not to say that housing policies to solve the situation are easy – the opposite is true, and single solutions don’t exist. 

Instead, it needs a strong, bold leadership that involves all areas and tiers of government rolling up its sleeves and making hard choices. We need coordinated policies across planning, skills, finance, safety, compliance, building codes, taxation, employment, small business, manufacturing, energy policy – the list goes on.

Adopting specific initiatives will set the stage for increased supply, reduced rents, and stabilised home prices by the end of the decade.

Multi-pronged solutions needed

The following initiatives will not resolve the inequities caused by decades of under supply of housing, but adopting them will set the stage for increased supply, reduced rents, and stabilised home prices by the end of the decade. It's not too late to make a difference.

  1. Focus on increasing housing supply across the housing continuum rather than focusing on one housing segment
  2. Include ‘housing affordability’ as a guiding principle for every state and federal government department developing housing-related policies
  3. Fund public housing equitably and increase public housing investment beyond election cycles
  4. Increase government investment in enabling infrastructure to get shovel-ready land delivered faster
  5. Ensure infrastructure costs are equitably shared and not burdened only on those supplying new housing
  6. Restore foreign investment into home building to help fund and boost the number of private rentals
  7. Increase placements in the Home Guarantee Scheme and introduce Help to Buy to support first-home buyers to secure house deposits
  8. Ensure stable, reliable migration policies are set in place and housing can be planned to support these settings
  9. Facilitate greater access to skilled labour through the introduction of an appropriate skilled migration program
  10. Boost apprentice numbers and provide consistent support for employers to take on an apprentice
  11. Re-evaluate mortgage lending restrictions that place unnecessary barriers for first-home buyers securing a home loan
  12. Improve data on land supply and benchmark new land releases against the National Housing Accord target of 1.2 million homes
  13. In conjunction with state and territory governments, implement widespread planning reforms as set out in the National Planning Reform Blueprint
  14. Aim for a Rental Vacancy Rate of three per cent to create a more competitive rental market, increase rental options and reduce prices
  15. Place a moratorium on new regulatory measures that would add to the cost of housing and require government standard-setting agencies to identify regulatory offsets for any new substantive regulations.
It’s time to introduce Help to Buy to support first-home buyers to secure house deposits.

Call to action

Addressing the housing crisis requires leadership and coordination from various ministers – housing, finance, skills, immigration and industry – as well as the Treasurer and all tiers of government. 

The federal government should support housing outcomes rather than hinder them. They should remove restrictions and enable Australians to secure a home without unnecessary financial strain. 

Today’s housing crisis has developed over more than 20 years and accelerated through the pandemic. It can’t be resolved by any single government or within one term, but much can be commenced. 

Not everyone will be happy with every decision, but getting shelter over people’s heads and reversing declining homeownership rates must be top priorities for all governments. 

Overall, we seek strong and brave leadership on housing, collaboration, and a system that supports our industry in delivering these much-needed homes without looking over our shoulder at the next new rule change coming down the line.

First published 20 January 2025

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