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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.”
Workplace laws are set for more changes in 2026.
Australia’s residential building industry has entered the new year with confidence still on shaky ground for small businesses as rising costs and policy uncertainty continue to cloud the outlook.
Tasmania’s housing market slowed in November, with building approvals falling sharply compared to October. Approvals for new homes dropped almost 20 per cent, and even after seasonal adjustment, the decline was 5.8 per cent.
Australia’s home building industry is expected to strengthen through 2026, supported by gradually improving building approvals and a recovery in demand, but the pace of growth will ultimately depend on how quickly interest rates can fall further, according to the Housing Industry Association.