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{{propApi.successMessage}} {{region}} Change locationOne year of the Housing Accord: vision set, but delivery falling short
One year of the Housing Accord: vision set, but delivery falling short
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“We welcome the intent and cooperation the Accord represents, but it must be said that meaningful progress on the ground is yet to materialise,” HIA Managing Director Jocelyn Martin said today.
“When the Accord was announced, HIA welcomed the vision of a unified national approach to housing supply. A year later, we are seeing the right conversations taking place and funding announcements made, but new housing starts aren’t keeping up with demand,” Ms Martin said.
“There were only 168,050 dwelling commencements nationally in the 2024 calendar year. If we continue at this pace, Australia will fall well short of the 1.2 million homes target.
“HIA’s forecast of dwelling commencements, or gross new housing supply, shows only around 986,000 homes will be delivered to market over the five years to 2028/29.
“Builders are still facing the same barriers that have been holding the industry back for years. Land supply remains constrained, planning systems are slow and complex, and the cost of delivering a new home continues to rise because of charges, taxes and red tape. Interest rates, skill shortages and material costs only add to these pressures.
“HIA welcomes the renewed focus on productivity in residential construction by the Minister for Housing Clare O’Neil. It appears to be finally registering with the Government that we need to address red tape brought about by archaic approaches to planning and building codes, we need ways to improve workforce participation and to encourage innovation and we need to address the barriers to foreign investment which are holding back apartment supply.
“However, governments at all levels need to move beyond commitments and deliver the reforms that will actually get more homes built.
“The goal of 1.2 million houses is an important one. It is true that it is going to be a tough ask to reach the target, but we must try.
“The Accord has provided the foundation to bring state, territory and the Federal Government to the table on housing. Australians now need governments to clear the obstacles that prevent homes being built. The next 12 months must be about removing barriers to delivery,” concluded Ms Martin.
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Government announces broader licensing powers and HBCA review
Today the State Government announced proposed changes to the regulatory powers to investigate registered builders who may be unable to meet the financial requirements of registration. The announcement also included a long-awaited review of the Home Building Contracts Act 1991 (HBCA) and associated laws.
Interest rate cuts boost building approvals
“Two cuts to the cash rate have seen the volume of detached house building approvals rise to be 3.2 per cent higher than the same month last year,” stated HIA Senior Economist Tom Devitt.
Huge task ahead to achieve 30,000 homes by 2030
“Building approvals data released today highlights the magnitude of the task ahead if we are to achieve the Government’s target of building 30,000 homes in the ACT over the next five years,” said Geordan Murray, acting HIA Executive Director ACT and Southern NSW.
$10,000 incentive for home building apprentices provides a timely boost
“Today marks the beginning of the Key Apprentice Program which will provide new commencing apprentices working in residential building trades with financial incentives totalling $10,000,” said Steven Wojtkiw, HIA Deputy Executive Director, Victoria.