{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Economic research & forecasting Economics Housing outlook Tailored market research Economic reports & data Inspiring Australia's building professionals Business & digital Products & innovation Projects HOUSING Online The only place to get your industry news Media releases Member alerts Submissions See all
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder & manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies & tool insurance Planning & safety solutions Building & planning services How can safety solutions help you? Independent site inspections Solutions for your business Contracts Online HIA Tradepass HIA SafeScan Advertise jobs Trusted support & guidance Contracts & compliance support Professional services Industrial relations Member savings Toyota vehicles Fuel savings Handy pay See all
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials & products Concrete, bricks & walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Falls from heights Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects COVID-19 Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand A job in the industry Get your builder's licence Continuing Professional Development (CPD) Find jobs
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Mates rates Get involved Become an award judge Join a committee Partner with us Our initiatives HIA Building Women GreenSmart Kitchen, bathroom and design hub Get to know us Our members Our people Our partners Support for you Charitable Foundation Mental health program
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program People & Business Awards GreenSmart Australian Housing Awards Awards winners Regional Award winners Australian Housing Award winners 2023 Australian Home of the Year Enter online Industry events Events in the next month Economic outlook National Conference Events calendar
HIA products
HIA products $vuetify.icons.faArrowRight
Shop @ HIA Digital Australian Standards Contracts Online Shipping & delivery Purchasing T&Cs See all Products Purchase NCC 2022 Building codes & standards Economic reports Hard copy contracts Guides & manuals
About Contact Newsroom
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Change location
{{propApi.text}} {{region}} Change location
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Increasing the supply of housing requires federal government action

Media release

Increasing the supply of housing requires federal government action

Media release
“Housing affordability across Australia has continued to decline as interest rates continue to rise. It now requires 1.6 average incomes to service the typical new mortgage, compared to 1.2 incomes in 2019,” stated HIA’s Deputy Managing Director for Policy and Industry, Jocelyn Martin.
HIA’s Affordability Index report was released today. The Index is calculated for each of the eight capital cities and regional areas on a quarterly basis and considers the latest dwelling prices, mortgage interest rates, and wage developments.

“The HIA Affordability Index fell by 1.1 per cent in the March Quarter 2023 compared to the preceding quarter, making housing in Australia 25 per cent less affordable than it was before the pandemic,” added Ms Martin.

“Housing affordability poses a major challenge across the country, and the issue is paramount on the policy agenda of all levels of government. It is crucial to identify policies that would work and those that would not, and it begins with a supply-and-demand balance. 

“Rising interest rates are only a part of the story. Housing affordability simply gets worse when housing supply falls short of demand. 

“This makes measures that do not increase the number of homes, such as convoluted planning processes and the heavy burden of taxation, likely to fail. The Australian Government has spoken widely about a plan to pass legislation, ‘The Housing Australia’s Future Fund Bill 2023’, which aims to improve the quality of housing data, improve forecasting of housing demand, and collaborate with states and territories to improve the supply of housing.

“This legislation has been held up in Federal Parliament over the mechanism to fund investment in public housing, and this is delaying changes to policy that will begin to address the failures that are constraining an improvement in the supply of new homes.

“In addition to the passage of this legislation through Parliament, there is also a need to reform state government taxes that have forced foreign investors out of the market. The impact of these taxes has seen foreign investors withdraw from the Australian market and consequently the number of apartments commencing construction fell to barely more than a third of its peak in 2016. Foreign investors do not force up house prices because they cannot buy existing homes. They can only buy new homes and improve the supply of rental accommodation and ease this shortage.

“A large investment by state and federal governments in public housing stock isn’t going to be sufficient to increase the supply of new homes to meet demand. The HAFF Bill 2023 isn’t going to solve the acute rental shortage this year, but it does begin a pathway to accountability for each tier of government and will assist in restoring balance,” concluded Ms Martin. 

The HIA Affordability Index across all capital cities saw the largest fall in Perth, declining by 2.2 per cent in the March Quarter 2023. This was followed by Sydney (-1.9 per cent), Melbourne (-1.3 per cent), Adelaide (-1.3 per cent), Darwin (-1.1 per cent), and Canberra (-0.8 per cent). Brisbane registered almost no change to its Index, while Hobart was the only capital city that registered an improvement in affordability (+1.3 per cent).

The most significant deterioration in regional affordability was in South Australia, down by -3.7 per cent in the March Quarter 2023. This was closely followed by regional Northern Territory (-3.6 per cent) and regional Western Australia (-3.3 per cent), with declines also seen in regional New South Wales (-1.1 per cent), regional Queensland (-1.1 per cent), and regional Victoria (-1.0 per cent). Regional Tasmania saw an improvement in affordability, with the Index up by 0.6 per cent in the quarter.

For more information please contact:

Jocelyn Martin

HIA Managing Director

Thomas Devitt

Latest articles
View all news $vuetify.icons.faArrowRight
29 Feb
Craig Smythe awarded Life Membership

Last week Craig Smythe from of Adbuild Constructions received HIA Life Membership in recognition of his service to the residential construction industry over the last 35 plus years. He becomes only the third Hunter member to receive this prestigious award.

27 Feb
Blocking UTAS move a backward step in housing supply

“The long-discussed move of the University of Tasmania (UTAS) from the Sandy Bay campus presents a real opportunity to ease housing pressures in Greater Hobart,” said Stuart Collins, HIA Executive Director Tasmania.

27 Feb
Continuing Professional Development (CPD) on the way

The Victorian Government has announced it is proposing Regulations that will require building practitioners and plumbers to meet Continuing Professional Development (CPD) requirements. A Regulatory Impact Statement and proposed regulations has been released for public comment.

27 Feb
EIE: Changes to create low-and mid-rise housing - NSW

HIA commented on the Explanation of Intended Effect (EIE) which outlines proposed changes to encourage more low-rise and mid-rise housing (December 2023).