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“To address this the Federal, State and Territory Governments have committed to a ‘Housing Accord’ to build 1.2 million much needed homes over the next five years,” HIA Managing Director, Jocelyn Martin said today.
“HIA has welcomed this announcement, and our members stand ready, willing and able to build these homes.
“However, the current commentary and ‘threats’ on further changes to tax settings is acting as a significant deterrent to productivity and increasing housing supply.
“This is coupled with the uncertainty from interest rate rises, new complex industrial relations reforms on businesses, the introduction of widespread changes to the building code and layers of approvals and regulatory change.
“This is all coming together to substantially affect market confidence and is reflected in building activity data which is indicating decade low numbers for future new home construction.
“Building businesses are feeling swamped and heavily weighed down by this constant attack on changing rules and increasing complexity, and at a time when we need more skilled workers, we are seeing more people leave our industry than enter it.
“It is time all parts of Government came together, to work in a coordinated way to commit to providing stable and reliable policies, and measures to support and grow the building industry – with the ultimate goal of building these much-needed homes.
“New housing is already one of the most highly taxed and regulated sectors in the economy, and any further increases to tax settings or increased regulatory complexity would only make that situation worse and ultimately result in less homes being built.
“Increasing the supply of housing is the key to addressing affordability. This will involve adequate release of land for new dwellings, increasing the density of housing in metropolitan areas, unlocking further land and infrastructure investment in regional areas and supporting investment in new housing.
“The focus needs to be on how we get more slabs poured that will result in the keys getting in the front doors of buyers’ and indeed renters’ pockets quicker,” concluded Ms Martin.
“Today’s announcement of a $10,000 incentive to boost the number of skilled workers in key housing trades is a welcomed response to the crippling labour shortages the residential building industry has been faced with for decades. HIA has long called for milestone apprentice incentives to grow the domestic workforce,” said HIA Managing Director Jocelyn Martin.
“The median price of land in Sydney is now a whopping $710,000 as people continue to show greater interest in more affordable markets such as the Hunter and Illawarra,” Brad Armitage, HIA Executive Director NSW, said today.
“The median price of land sold nationally increased by 7.6 per cent compared to the previous year, much faster than the rise in the cost of other goods and services in the economy,” stated HIA Economist Maurice Tapang.
“Australia commenced construction on just 43,250 new homes in the first quarter of the 2024/25 financial year,” stated HIA Senior Economist Tom Devitt.