{{ propApi.searchIcon }}
{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights Economics Insights Data & forecasts Tailored research & analysis Advocacy & policy Advocacy Policy priorities Position statements Submissions News & inspiration Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
For your business Contracts Online Safety systems & solutions HIA SafeScan Member perks Toyota vehicles The Good Guys Commercial Ampol fuel savings See all Industry insurance HIA Insurance Services Construction works insurance Home warranty insurance Tradies & tool insurance Apprentices Why host a HIA apprentice? Hire an apprentice Value for money Support & guidance Contracts & compliance support Building & planning services Australian Standards
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes National Construction Code Australian standards Getting it right on site See all Building materials & products Concrete, bricks & walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Safety rules Working with silica See all Building your business Growing your business Communication for your business See all Other subjects Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer How do I apply? Frequently asked questions Study with us Find a course to suit you Qualification courses Learning on demand Professional development courses A job in the industry Get your builder's licence Continuing Professional Development (CPD) Further your career
HIA community
HIA community $vuetify.icons.faArrowRight
Grow with us Sign me up Become a member Member benefits Mates rates Our podcasts Made To Build Built Different HIA Building Australia Building the Hunter Our initiatives HIA Building Women Charitable Foundation GreenSmart Kitchen, bathroom & design hub Get involved Become an award judge Join a committee Meet our members Partner with us
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Awards program People & Business Awards GreenSmart Australian Housing Awards Awards winners Regional Award winners Australian Housing Award winners 2026 Australian Home of the Year Industry events Events in the next month Economic outlook National Conference Events calendar
HIA shop
HIA shop $vuetify.icons.faArrowRight
Most popular products National Construction Code Vol 1 & 2 Waterproofing wet areas AS 3740:2021 HIA Guide to Waterproofing HIA Guide to NCC Livable Housing Provisions Top categories Building codes & standards Contracts & documents Guides & manuals Safety products Signage For your business Contracts Online Digital Australian Standards Digital Resource Library Forecasts & data
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

New home buyers face substantial cost increases from 1 October

Media release

New home buyers face substantial cost increases from 1 October

Media release
“The introduction of changes to the energy efficiency requirements in NSW will add substantial costs to the construction of a new home in NSW, estimated to be $20,000 - $40,000,” said David Bare, HIA Executive Director NSW.

"At a time when housing supply and affordability are the most challenging in our history, industry and homeowners should be afforded more time to implement and prepare for such significant changes.

"Whilst today’s announcement on some moderate transitional arrangements by NSW Planning Minister Paul Scully provides some relief, it will only address a limited number of building projects.

"HIA remains deeply concerned on the timing for adoption of the BASIX changes given the scale and complexity of reforms.

"Victoria, South Australia, Western Australia, and Tasmania have all recognised the significant impacts to affordability of increased material and labour costs, interest rate rises and supply chain constraints.

"Providing the housing sector in those states with much needed relief by delaying implementation of the new energy targets.

"HIA calls on the NSW Government to follow the sensible lead of other states and provide a full 12-month delay for the BASIX Standards increases," said Mr Bare.

Why is a delay necessary in NSW?

The key reasons why industry is calling on the NSW Government for additional 12 month phase in period are:

  • The software tools that are critical for builders to accurately assess how to adjust existing designs to comply in a manner that will be at the lowest cost to consumers are not currently available despite the changes due to take effect in a manner of weeks.
  • The NSW Government DIY tool is still not formally launched, and available to use.
  • New build contract cancellations are double what they were 12 months ago as confidence levels and borrowing capacity of new home buyers has deteriorated due to interest rises. Further cost increases will only add more pressure.
  • Supply chain constraints have been a major issue throughout and emerging from the pandemic. HIA builder members have little confidence that supply chains can adjust to deliver the new products needed to comply with the energy targets without any delays and still without surety of the final cost impacts for their customers.
  • The return on investment for this change on new houses is measured in decades – not years.

"Given these issues, there is simply not enough lead time for the industry to prepare and adapt their plans, specification and contracts given the scale and complexity of the changes," said Mr Bare.

More time will allow industry to come up with cost effective solutions

"It is vitally important that industry has all the tools and criteria in place to enable it to deliver the BASIX changes at the lowest possible cost for new home buyers.

"The bottom line is that housing supply and affordability is being put at risk unnecessarily. The home building industry can adjust and deliver the most cost-effective solutions given sufficient time.

"HIA also called for the new energy measures to only be applied to contracts signed from the implementation date, to spare those already with fixed price contracts or with approved loans being blindsided by the additional retrospective compliance costs.

"We welcome the changes announced on this aspect by Minister Scully and urge the Government to adopt this approach in all such cases in the future," concluded Mr Bare.

For more information please contact:

David Bare

Former Executive Director - NSW
Latest articles
View all news $vuetify.icons.faArrowRight
10 Jul
Update: contracts signed before 1 July 2026 and optional cover

HIA will continue to update you as we receive further advice and information on the ongoing transition from Domestic Building Insurance (DBI) to the First Resort Home Warranty Scheme (FRHWS).

10 Jul
Six-month lifeline no substitute for permanent fire testing solution

The Housing Industry Association (HIA) has welcomed the decision to extend the lease of CSIRO's North Ryde fire testing facility by six months, saying the announcement provides valuable breathing space but does not resolve the long-term threat to Australia's building product testing capability.

09 Jul
Apartment surge sets the stage for missing middle era

“The strong pipeline of multi-unit dwelling approvals recorded during the second half of 2025 has begun to translate into construction activity,” said Geordan Murray, HIA Executive Director ACT & Southern NSW.

09 Jul
Top end apprentices helping build Australia's housing future

The Housing Industry Association (HIA) has welcomed Leader of the Opposition Angus Taylor and Shadow Minister for Skills and Training Senator Jacinta Nampijinpa Price to the HIA Skills Centre in Darwin this week to meet apprentices and discuss the workforce challenges confronting Australia's residential construction industry.