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{{propApi.successMessage}} {{region}} Change locationCan we build these new homes?
Can we build these new homes?
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“The Australian Government’s new target of 1.2 million homes over five years, from July 2024 is an increase of 200,000 homes above the one-million aspirational target set at the National Housing Accord in 2022,” said Jocelyn Martin, HIA’s Deputy Managing Director – Industry and Policy.
“This is an ambitious target, but ambition is the path to success and bold action is exactly what is needed. So yes, we can build these new homes, but it will require cooperation across all levels of government and a commitment to unprecedented change,” stressed Ms Martin.
“Supply chain capacity arose over the last few years as a result of extraordinary circumstances, disruptions to global supply chains and a huge spike in demand within a very short time frame. These pressures have dissipated now and the five year horizon should enable supply chains to adjust and build confidence among suppliers.
“Skills shortages in the industry are likely to be one of the greatest challenges. In order to support the industry to grow the workforce, there must be ongoing support for apprentices and the employers who provide on-the-job training.
“Initiatives to attract more females to the sector, incentives to make mature-age apprentices more affordable and mentoring programs to retain apprentices are all important to support the need for skills.
“The home building industry has the capacity to build the homes needed, but it requires access to land at a lower cost, reduced taxes and stable and reliable policy settings. National Cabinet’s National Planning Reform Blueprint is a welcome recognition of the need to streamline the approval processes.
“Incentivising the state and local governments with the Housing Support Bonus ensures that all levels of government are accountable for their part of the delivery program.
“The banking system needs to take some responsibility to improve capacity. Builders and their clients need more flexibility, including to allow cost-plus contracts where they suit the parties.
“Imposts which fall solely on the construction of new homes such as moves to 7-star and beyond need proper consultation and transition plans to limit the cost impost on new homes and on affordability.
“The ambitious targets announced by National Cabinet are welcome and HIA looks forward to working with all levels of government to deliver these new homes for Australian families,” concluded Ms Martin.
For more information please contact:
International situation and current market impacts update
HIA is aware that over the past week members have been receiving a range of advice from suppliers on cost increases to several building materials and other related construction equipment such as skips, plant and equipment hire.
Brisbane plan must not be derailed by NIMBY opposition
The Housing Industry Association (HIA) has backed Brisbane City Council’s ‘More Homes, Sooner’ plan, warning that community opposition risks undermining much-needed housing supply and worsening affordability pressures across the city.
Dealing with cost increases under your contract
HIA is aware that industry is raising concerns about price increases to fuel and materials arising from the conflict in the Middle East. To assist members to account and respond to price increases we have prepared information on dealing with cost uncertainties and fluctuations under HIA contracts.
How to unpick Keating’s Legacy: a users guide
This opinion piece from HIA Chief Economist Tim Reardon responds to the Reserve Bank of Australia Financial Stability Review and discusses how the cumulative tightening of macroprudential settings has increasingly locked first home buyers out of the market.