The past few months have reinforced just how critical Australia’s residential building industry is to the nation’s economic stability, productivity and social wellbeing. They have also highlighted how exposed our sector remains to rising costs, regulatory complexity and global uncertainty at a time when governments are asking industry to deliver more homes than ever before.

The Reserve Bank’s recent interest rate increase has only intensified the challenge. Higher financing costs make it harder for builders, developers and consumers to bring projects to market. At the same time, rising fuel, freight and material costs – many linked to ongoing global instability – continue flowing through supply chains and placing enormous pressure on businesses operating under fixed-price contracts.

This is not a theoretical issue for our industry. Residential builders commonly sign contracts months before construction begins, locking in pricing long before many of the actual costs are incurred. While this provides certainty for clients, it leaves builders carrying significant risk when unexpected cost increases in fuel, transport or materials occur.

Impacts of fuel supply

Recent global tensions, particularly in the Middle East, have once again exposed these vulnerabilities. Earlier this year, HIA met directly with government leaders and industry stakeholders to discuss the impacts of fuel supply disruptions and escalating material costs.

The government’s temporary fuel relief measures were welcome, particularly for regional businesses and freight-dependent supply chains. However, they also served as a reminder of how interconnected housing affordability is with broader economic and geopolitical conditions.

For housing policy, the lesson is straightforward. Governments may not control global conflicts or international supply chains, but they absolutely control the regulatory and policy settings within Australia. HIA has consistently argued for a pause on additional regulatory burdens and tax measures that risk further constraining housing supply.

At a time when Australia is attempting to deliver 1.2 million homes by 2029, now is not the moment to create uncertainty around housing investment.

The broader issue is that Australia’s housing affordability challenge is fundamentally a productivity challenge. This was central to HIA’s recent appearance before the Senate Select Committee Inquiry into Productivity in Australia.

Improving approval timeframes

Over the past decade, housing construction productivity has deteriorated significantly. Importantly, this is not because builders or tradespeople are less capable or less committed. The real problem is the growing complexity of the systems they are required to navigate.

Layer upon layer of regulation across federal, state and local government has slowed approvals, increased costs and reduced certainty. Planning systems differ across jurisdictions. Environmental approvals are often duplicated. Frequent changes to the National Construction Code (NCC) create additional disruption and compliance costs. Collectively, these settings make it harder, slower and more expensive to build homes.

HIA welcomed the federal government’s recent commitment of more than $45 million to support implementation of reforms to the Environment Protection and Biodiversity Conservation (EPBC) Act. The focus on bilateral agreements between federal and state governments has the potential to significantly reduce duplication and improve approval timeframes for housing projects.

We are already seeing encouraging signs through the Housing Strike Team established following the Economic Reform Roundtable, with some long-delayed housing projects now progressing far more quickly. These outcomes demonstrate that when governments prioritise coordination and efficiency, better results are possible.

But isolated examples are not enough. Faster approvals and streamlined systems must become the norm, not the exception.

NCC overhaul

The same principle applies to the NCC. At HIA’s National Policy Congress on the Gold Coast in April, members from across the country expressed strong support for a comprehensive overhaul of the NCC.

The code remains a cornerstone of Australia’s building system, but it has become increasingly complex and burdened with policy objectives far beyond its original purpose. Industry is calling for a modernised, more practical code that supports innovation, productivity and buildability while maintaining strong safety and performance standards.

Technology and innovation also have an important role to play. The industry is increasingly exploring how artificial intelligence and digital tools can improve efficiency, strengthen supply chains and support business operations. Governments must ensure that regulation supports innovation rather than unintentionally stifling it through excessive restriction.

At the same time, we cannot lose sight of the human side of our industry.

Recognising the extraordinary

The past few months have provided an important opportunity to celebrate the extraordinary professionalism and innovation within our sector. The 2026 HIA National Conference and Australian Housing Awards on the Gold Coast brought together builders, designers, manufacturers and industry leaders from across the country to recognise excellence in residential construction.

The calibre of this year’s finalists and winners was exceptional and reflected the resilience, creativity and commitment that continues to define our industry, even in challenging conditions.

Despite the challenges of recent months, I remain confident in the capability and fortitude of Australia’s residential building sector. Builders, trades, manufacturers and suppliers are ready to deliver the homes our country needs.

Australia’s housing challenge is significant, but the solutions are known. What matters now is the willingness to implement those solutions consistently, cooperatively and with a genuine focus on building more homes for Australian.