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“Housing supply and affordability remains the biggest challenge for Western Australians, not only to help people now but also to help the state manage our future population growth,” said Michael McGowan, Executive Director WA.
“HIA estimates that Western Australia will have to build 10 per cent of the one million homes proposed by the Federal Government’s national Housing Accord over the next five years. That equates to 20,000 homes per year, yet currently we only have a workforce completing 14,000 dwellings per year.
“In 2023 the residential building industry’s biggest barrier to improving housing supply and affordability continues to be the shortage of skilled labour.
“The Government’s investment of $11 million to support skilled migration and its continued support of apprentices in this budget is an important step in the right direction to improve labour supply.
“The Government’s $511 million investment in social and affordable housing program is also extremely welcome.
“Social and affordable housing has suffered from a prolonged under-investment. Greater investment in new housing that services this part of the market can assist in reducing the number of households experiencing housing stress.
“The current constraints in the housing market are creating a growing divide between social housing and affordable rentals.
“If housing affordability is to be improved, we must see further collaboration between all levels of government and industry, with a concerted focus on increasing the housing supply,” concluded Mr McGowan.
“Home building materials have continued to experience only modest cost increases, up by 1.6 per cent in the 2024/25 financial year,” stated HIA Senior Economist, Maurice Tapang.
“Today’s interim report from the Productivity Commission overwhelmingly backs what HIA has long been saying - that the regulatory burden on businesses is getting worse in this country and there is need for a major overhaul on the approach to regulation,” said HIA Managing Director, Jocelyn Martin.
“The Housing Industry Association (HIA) welcomes the release of the Queensland Productivity Commission’s interim report into construction productivity It is a significant and necessary step toward overcoming the housing supply challenges facing Queensland,” said Michael Roberts, HIA Executive Director Queensland.
“New home building approvals in the 2024/25 financial year were up by 13.9 per cent compared to their 2023/24 trough,” stated HIA Senior Economist Tom Devitt.