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HIA Managing Director Jocelyn Martin warned of the stark realities facing the country, unprecedented levels of homelessness, impossible access to rental accommodation and a growing view that home ownership is a thing of the past.
“We are simply not building enough homes to keep up with demand. Australia needs to build around 240,000 new homes per year, every year, to meet demand and put downward pressure on affordability but in the last 12 months under 180,000 were completed. Not only is this shortfall driving up prices, worsening affordability, and placing enormous pressure on renters and families across the country but also means we are set to fall well below the Government’s commitment to build 1.2 million homes over five years,” Ms Martin said.
“In the coming weeks and months, we will be asking both sides to stop politicising housing and consider the pressing challenges confronting Australians and the building industry. While the recipe to building more homes is not new, we need our leaders to own the housing supply problem and to work together with industry for solutions.
“The recognition of construction industry skill shortages and recent infrastructure announcements are positive but to really move the dial on building activity long term action is needed to address the structural issues confronting the housing industry.
“Taxation policies are playing a major role in driving up costs. Taxes now account for up to 50% of the cost of a new home in most major cities. Immediate reforms are needed to remove inefficiencies like stamp duty cascading onto GST, which unfairly inflate housing prices and make affordability even harder to achieve.
“Land supply remains another significant hurdle, with a lack of development-ready land stalling housing projects across the country.
“We have hundreds of housing sites ready to go but held back due to inadequate infrastructure. The Federal Government must invest in the roads, water, and services needed to deliver these projects.
“In 2025 we ask all political parties to be outraged over the status quo and be bold, be courageous and prioritise initiatives which directly improve housing supply. Let’s build the homes Australians need and ensure everyone has a place to call home,” Ms Martin concluded.
HIA welcomes the release of the NSW Government’s draft Guideline to speed up the delivery of new homes and infrastructure through works-in-kind agreements with developers.
“Australia’s population reached 27.4 million by the end of 2024, up by 445,900 people, or 1.7 per cent for the year,” stated HIA Senior Economist, Tom Devitt.
The Tasmanian election that no-one wanted to have is in full swing, and while the limited campaign period is unlikely to provide the usual platform to promote key policies and reforms, HIA is calling on both major parties to prioritise housing policies given the significant challenges across the state.
“Our dated and complex planning system is littered with speed bumps that could easily be removed”, said Brad Armitage, HIA NSW Executive Director.