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The National Housing Supply and Affordability Council released their “State of the Housing System” report in Sydney today.
“The Report includes forecasts of housing demand that fall significantly short of what is required. The underestimating of demand is one of the reasons local councils have continually under-supplied land for development over recent decades.
“Success however, isn’t in meeting forecasts set out in a report, but in ensuring that rental price growth, and house price growth are constrained. This will require all tiers of government to work toward increasing supply of housing to ensure that rental properties are more readily available in the future.
“Success is a rental vacancy rate above 3 per cent in every local council across the economy.
“The acute shortage of housing stock has led to rental vacancy rates across the country approaching zero. This leads to very inequitable outcomes.
“Policy initiatives outlined in the report, however, are warranted.
“The ten areas that can improve housing outcomes listed in the report include positive initiatives to increase public housing stock, improving land use and planning systems, boosting building capacity and improving the quality of housing data.
“Increasing housing supply to meet underlying demand will require the Government to achieve their goal of building 1.2 million homes and continuing to grow the volume of home completions thereafter.
“Reliable data on the availability of developable land is necessary to improve the supply of new homes. The lack of this data is one of the systemic failures of the current housing system.
“The availability of skilled labour is constraining housing supply in 2024, especially for apartments in capital cities, where the demands from new migrants is most acute.
“Proposals to impose performance-based outcomes on local councils is a necessary step for the Australian government to force the increase in the supply of new homes.
“In addition to these proposals, taxation of homes results in fewer new homes being built. Governments of all tiers can increase the supply of housing by lowering the taxes, fees, charges and restrictions on new homes,” concluded Mr Reardon.
In mid-June 2025, the NSW Premier released the Housing and Productivity Contribution (HPC) Works-in-Kind Guideline for public consultation.
Today the State Government announced proposed changes to the regulatory powers to investigate registered builders who may be unable to meet the financial requirements of registration. The announcement also included a long-awaited review of the Home Building Contracts Act 1991 (HBCA) and associated laws.
“Two cuts to the cash rate have seen the volume of detached house building approvals rise to be 3.2 per cent higher than the same month last year,” stated HIA Senior Economist Tom Devitt.
“Building approvals data released today highlights the magnitude of the task ahead if we are to achieve the Government’s target of building 30,000 homes in the ACT over the next five years,” said Geordan Murray, acting HIA Executive Director ACT and Southern NSW.