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“The release of the Productivity Commissioner, Peter Achterstraat’s paper Building More Homes Where People Want to Live reinforces the need for turbocharging housing supply in NSW and particularly Sydney”, says HIA NSW Executive Director, David Bare.
“The paper highlights that the best way to make housing more affordable is to build more homes and this requires more efficient land use in Sydney. This means higher density housing to deliver greater supply and improved affordability. Whether that be more apartments closer to the CBD and transport hubs, or low-rise medium density housing types in existing suburbs. It is the first of a number of papers to be released by the Productivity Commission on the housing supply crisis facing the state.
HIA has long advocated for medium density housing in areas where high density is not an option and was instrumental in the development of the State’s Low Rise Housing Diversity Code. However, this code has struggled against backlash from councils for years. It is refreshing that the paper highlights the need to build more townhouses, dual-occupancy dwellings and granny flats.
We need more supply in all forms of housing, be it apartments, medium-density, or greenfield detached housing. The challenge is ensuring that the settings are in place to deliver.”
“The Housing Industry Association (HIA) welcomes the announcement of the new Ministerial cabinet, set out by the Prime Minister today, and in particular the expansion of the housing portfolio to take in the future cities planning and a separate special envoy focused on social housing and homelessness,” said HIA Managing Director, Jocelyn Martin.
Building approvals for dwellings in Canberra for the year to the end of March have shown some signs that the market may be turning the corner but still remain well below government targets.
“Australia has just seen its two weakest years of new home commencements in over a decade, meaning these ongoing shortages of skilled trades are not being caused by home building activity,” stated HIA Chief Economist, Tim Reardon.
“There were 48,620 new homes approved for construction in the first quarter of 2025, up by 20.8 per cent on a year earlier,” stated HIA Senior Economist Tom Devitt.