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{{propApi.successMessage}} {{region}} Change locationNSW Productivity Commission Report highlights critical housing supply barriers
NSW Productivity Commission Report highlights critical housing supply barriers
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HIA and our members provided significant input to the Commission to support the preparation of the report, “I applaud the Commissioner for listening to feedback from actual builders on the ground and giving them the opportunity to provide input into a review of this nature,” said David Bare HIA Executive Director NSW.
“The report picks up on many of the core issues facing the construction industry; and brings more focus on what the government needs to do to support the industry to deliver housing supply for NSW. We are pleased to see many of our positions reflected in the recommendations from the Productivity and Equality Commission report.”
This includes the need to:
Make developments more feasible, including those within the transport-oriented development zones.
- Streamline the development assessment process by reducing bottlenecks, including post-DA approvals.
- Create a pro-housing regulatory environment by relaxing requirements for complying development and pausing further changes to building codes or standards that add to construction costs unless there is an overriding need to address defects or public safety.
- Supporting the development of a larger skilled labour workforce through initiatives such as targeted skilled migration, recognition of overseas qualifications, and training reform.
“Despite an initial intention to focus on non-planning barriers, it is clear the Commissioner could not ignore the current issues within the NSW planning system that stifle development and limit the potential of recent housing supply initiatives such as Transport-Oriented Development.
“Whilst the Commissioner’s earlier reports have been focused on higher density in established areas, there is no doubt it is critical we have an equally strong focus on greenfield development to deliver the housing supply we need. HIA believes there needs to be a focus on increasing housing supply across the housing continuum, rather than focusing on one housing segment.
“The challenge is now with Premier Minns to see how many of these recommendations will be adopted and how quickly they can be implemented by his government,” Mr Bare concluded.
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Detached starts edge higher in Tasmania, but supply gap remains
“Tasmania recorded a modest improvement in detached home building at the end of 2025, as Australia’s housing construction sector showed clearer signs of recovery,” stated HIA Executive Director – Tasmania, Benjamin Price.
Multi-unit starts in NSW at their highest in 7 years
“There were over 10,000 multi-unit starts in New South Wales in the December quarter 2025, the highest since late 2018,” stated HIA Executive Director NSW Brad Armitage.
Lower housing taxes, not just interest rates, needed to reach 1.2 million target
“Australia commenced construction on 282,500 new homes in the first 18 months of the government’s goal of building 1.2 million new homes over five years. This is 77,500 homes behind schedule,” stated HIA Senior Economist, Tom Devitt.
HIA welcomes statewide Community Participation Plan
“The Housing Industry Association welcomes today’s announcement by the Planning Minister for a statewide Community Participation Plan,” declared Brad Armitage, Executive Director NSW.