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{{propApi.successMessage}} {{region}} Change locationBudget must tackle barriers to housing supply
Budget must tackle barriers to housing supply
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“Australia is facing a critical shortfall in housing supply, with only 180,000 homes built in the last year—well below the 240,000 needed annually to meet demand. This is not just a numbers issue, it is a crisis that is affecting families, renters, and would-be homeowners across the country.
HIA is proposing a $12 billion infrastructure investment over the next five years as a cornerstone of the solution.
“This funding is essential to unlock land supply and deliver the enabling infrastructure - such as roads, water and sewerage – that housing developments require.
“The lack of essential infrastructure is a handbrake on housing supply, and this Budget must take steps to prioritise infrastructure funding to fast-track projects and make land ready for development,” Ms Martin said.
“The Submission also outlines the need for a coordinated, national approach to planning reform to reduce delays and cut unnecessary costs.
“The inefficiencies in our planning systems are strangling housing supply. It is time for a national strategy to align efforts across all levels of government, streamline processes, and remove the regulatory hurdles that are inflating the cost of housing. A National Planning Summit would be a powerful first step in driving genuine reform.
“In addition to addressing supply and infrastructure, HIA is also focusing on workforce shortages, which pose a significant challenge to meeting housing targets.
“To deliver the Government’s commitment of 1.2 million homes over five years, we need 83,000 additional skilled workers in the residential construction industry.
“That means investing in streamlining migration pathways for in-demand trades and increasing support for apprentices through better training incentives and retention programs.
“The average cost of a house-and-land package in major cities is now $1.3 million, making home ownership unattainable for many Australians.
“First-home buyers are being locked out, with saving for a deposit taking upwards of six years. We need to expand and simplify programs like the Home Guarantee Scheme and explore innovative approaches, such as allowing superannuation to be used to buy a house.
“This is not the time for half-measures. Housing is fundamental to Australia’s economic stability and social wellbeing. The 2025-2026 Budget is an opportunity to make meaningful progress by delivering the investments and reforms needed to address the crisis,” Ms Martin concluded.
Detached house approvals picking up
“There were 9,490 detached homes approved in the month of April 2025, up by 3.3 per cent compared to the previous month,” stated HIA Senior Economist Maurice Tapang.
State Budget is a missed opportunity to stimulate housing
The Treasurer has handed down the 2025/26 Tasmanian Budget. The Budget focuses on alleviating cost of living pressures, health, education and infrastructure, while mapping out a path to a fiscal balance surplus in 2032/2033.
HIA supports bipartisan approach to planning reform NSW
“The NSW planning system has failed to deliver the number of homes we desperately need and we fully support removing the politics from housing, to address this growing crisis,” said Brad Armitage, HIA Executive Director NSW.
Opposition pledge to remove stamp duty for first home buyers welcomed (Vic)
The Victorian Opposition’s announcement that it would remove stamp duty for first-home buyers spending up to $1 million on a new or existing home if elected at next year’s state election, is a positive step towards improving home affordability,” says Steven Wojtkiw, HIA Victoria Deputy Executive Director.