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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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BuildSkills Australia releases Workforce Capacity Study
The Housing Industry Association (HIA) welcomes the release of BuildSkills Australia’s Housing Workforce Capacity Study, which highlights the need to strengthen Australia’s residential construction workforce to meet the National Housing Accord target of 1.2 million new homes by 2029.
Australia's 83,300 tradies shortfall on International Tradespeople Day
“Trade shortages loom as a major threat to reaching the Housing Accord target of building 1.2million homes by 2029,” said HIA Executive Director - Future Workforce, Mike Hermon.
Victoria’s Housing Statement progress: we need more builders
“The Victorian government’s Housing Statement is approaching its two-year anniversary. Since that time the Victorian government has implemented some positive reforms, but it is becoming clear that we will not have enough people to build these homes as quickly as we need,” stated HIA Executive Director Victoria, Keith Ryan.
Productivity Commission Five Pillars
With the focus of the national economic debate on improving productivity following the recent roundtable, HIA used our submission to the Productivity Commission’s Five Pillars reforms to call on the Federal Government to act swiftly to lift productivity and unlock new housing supply.