Following WA’s state election in March, the Labor Government retained a significant majority. As we move quickly from this state election to the upcoming federal election, the topics of housing and the cost of living are constantly being repeated.

So, what will HIA members in WA look out for following the recent state election?

Vast amounts of money have been promised to unlock the supply of tens of thousands of houses. It’s money the state badly needs to help with the housing shortage. However, rather than disappearing into short-term programs and surface fixes, it must be used wisely in investments that build the sustained capacity of industry over a long period. 

History tells us it will take years to navigate our way out of this due to a range of issues, such as affecting housing supply, affordability and demand. This will be an ongoing challenge for governments.

Businesses around the state are feeling the effects. It may be a lack of accommodation for key workers, accommodation in regional centres for workers to support the town’s operations, or the cost of rent and mortgages placing wage pressure on businesses.

So, off the back of two consecutive landslide victories, WA Labor has once again been elected to run the state for the next four years. So, where do we start?

Why we need better supply and affordability

The current housing shortage is not a demand problem but is clearly a supply issue. Everything a new government does should support the current operating environment and unlock capacity constraints in the future to ensure better supply and affordability.

Building approval and sales figures are an accurate reflection of what builders believe the industry has the capacity to build. If we want builders to have confidence in the market to deliver more homes, there needs to be a delivery of available and serviced land, available workforce and streamlined processes that reduce the time jobs are waiting to start or stalled in construction. 

In the past 12 months, building approvals have increased 32 per cent in the detached housing market, and there has been a total of 21,000 dwelling approvals. It’s a positive sign that builders are feeling more comfortable with capacity and that consumers have more confidence in the residential construction market. 

However, even at these levels, we’re seeing delays in available and serviced land, a tight labour market and a constantly changing regulatory environment. New detached houses are financially viable to build and for consumers to buy, but the multi-storey market remains challenging with high costs and a shortage of expertise making many unviable. 

Despite the demand, there are more than 7500 dwellings that are approved but have yet to commence construction. A little more than 1000 apartments are likely to be completed in the next 12 months.

How to make these projects more viable

HIA has long advocated that we need to continue to invest in the workforce to make these projects more viable. While we often talk about the construction trades – carpenters, bricklayers, plumbers and tilers – the engineers and civil operators will be just as important to create supply. The delivery of civil infrastructure is critical in providing project-ready land and Western Power and Water Corporation are key partners in boosting the supply of housing.

The new WA Government has committed to $400 million of infrastructure spend. The completion of Metronet will create some availability in the labour market but with the Women and Babies Hospital, defence investment, and the move to clean energy, there’s more than enough work to readily absorb this capacity. 

HIA is on record that we should be targeting a minimum of 9000 apprentices and 2000 interstate or international workers per year for the next four years to build our workforce in a sustainable way. Free TAFE courses, government incentives and wage support will help this. But with training facilities at or near capacity, do we have the infrastructure to support this volume? Well, we might need to build this as well!

The value of sustained investment in social housing

Long-term investment and support for the industry also allows businesses to invest in the research and innovation that will see Western Australia start to experiment more with alternative methods of construction. $50 million has been committed to innovation by the WA Labor government as we aspire to build 25,000 dwellings per year. There is room for all methods of construction for all types of dwellings if we can create a strong and stable economic and operating environment.

Sustained investment in social housing over a four-year period will also provide the government and builders with a pipeline of guaranteed work. There’s no disputing the need, and the security of investment allows builders to diversify their businesses, employ staff and invest in apprentices in the knowledge that there’s government support to help deliver homes over the longer period.

Finally, the industry needs regulatory certainty. Building a house or an apartment can be a process that takes between two and five years. Regularity change during this period only creates uncertainty and in 99 per cent of cases results in additional time and cost. It should be a priority for Treasury and the Housing Supply Unit to cast a critical eye over any changes that impact supply and affordability before any implementation.

The current housing shortage is not a demand problem but is clearly a supply issue. And it’s the hard work behind the scenes to collaborate with industry that needs to be the focus over the next four years for state and federal governments to support housing delivery.

Be up to date

With the federal election taking place on May 3, HIA will continue to advocate for a comprehensive housing plan from both parties.

HIA’s Let’s Build election campaign calls on all major parties to make housing a national priority by:

• Addressing our chronic skills shortages
• Removing the barriers and roadblocks to support greater housing supply
• Establishing financial settings that supports all Australians into home ownership.

For more information, visit Let’s Build Australia.

First published on 11 April 2025