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{{propApi.successMessage}} {{region}} Change locationLand is the number one constraint on home building in Australia
Land is the number one constraint on home building in Australia
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The HIA-Cotality Residential Land Report provides updated information on sales activity in 52 housing markets across Australia, including the six state capital cities.
“Since 2000, residential land prices have increased by more than 500 per cent. Over the same period, construction costs and the price of skilled labour increased by around 150%.
The long-run escalation in housing costs has been driven overwhelmingly by land,” added Mr Reardon.
“The way governments release, service and tax land has embedded the cost of infrastructure, delays and planning decisions into land prices. Those costs are paid upfront, capitalised into land values and ultimately borne by new home buyers.
“The latest HIA-Cotality Residential Land Report, released today, also shows the median price of residential land rose again in the September quarter, reaching a new record high nationally, up more than 10 per cent over the year and growing at around three times the pace of consumer price inflation.
Cotality research director, Tim Lawless, said, “Persistent growth in construction costs is another factor in Australia’s housing shortfall and affordability challenges. The cost to build a house rose another 1.0% in the December quarter, pushing building costs more than 30% higher over the past five years.”
“High building costs are contributing to inflation. The cost of new dwellings purchased by owner-occupiers, which has the largest weight in the CPI calculation, was up 3.0% in the December CPI, adding to renewed cost of living pressures.”
“With land costs and building costs continuing to trend higher, along with high contribution charges and taxes, project feasibility remain a core challenge for builders and developers in delivering desperately needed housing supply, concluded Mr Lawless.”
“It was easy over the last few years to lose sight of what has been the most pressing constraint on Australian home building – everything has appeared to be under pressure since the pandemic”, added Mr Reardon.
“The shortage of shovel-ready land is central to solving the affordability challenge.
“In just the last year, residential lot prices in Brisbane and Perth increased by 18 per cent and 21 per cent respectively, while Adelaide prices jumped a whopping 40 per cent.
“Without a healthy pipeline of shovel-ready land across Australia’s capitals and regions, along with all the associated infrastructure, fairly funded, the return of demand for new housing will be diverted into the established housing market, further driving up prices and worsening the affordability crisis,” concluded Mr Reardon.
Download our latest HIA-Cotality Residential Land Report
Price increase over time
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New rules add thousands to the cost of a new home as Tasmania falls years behind on housing
From today, every new home built in Tasmania must meet the full Livable Housing Design requirements. The Housing Industry Association says this adds thousands of dollars to the cost of building a home, at a time when Tasmanians can least afford it.
Rules for managing the risk of falls have changed - are you up to date?
Changes to Western Australia's requirements for managing the risks of falls will commence on 1 October 2026, introducing new expectations for builders, contractors and workers undertaking tasks where there is a risk of falling.
Livable Housing Design: final stage now in force
As of today, 1 October 2026, all new building work in Tasmania, unless exempt, must comply with all requirements of Part H8 Livable Housing Design of NCC Volume Two.
ACT housing approvals slump puts 2030 target under pressure
“The ACT’s housing supply pipeline is weakening, with building approvals in the three months to August halving compared with a year earlier,” said HIA Executive Director ACT and Southern NSW, Geordan Murray.