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{{propApi.successMessage}} {{region}} Change locationSmall business confidence falters in residential building sector
Small business confidence falters in residential building sector
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New research from the Housing Industry Association (HIA) shows small businesses remain cautious about the year ahead, despite strong underlying demand for housing.
“HIA research shows that 59 per cent of our small business members surveyed do not expect to increase profits this financial year compared to last,” said HIA Chief Executive – Industry and Policy, Simon Croft.
“If businesses aren’t making reasonable returns, they lack the capital to take on new projects and reinvest in operations or staff to improve productivity – creating a cycle that’s hard to break.
“Many members report that high insurance costs, labour shortages and persistent planning delays are limiting new work and investment decisions.
“Margins are expected to remain tight, with builders continuing to absorb higher labour, material and regulatory costs, while approval timeframes and financing constraints slow projects before they even start.
“Lifting confidence – and the viability of small businesses – in the building sector must be a priority if governments are serious about tackling Australia’s housing shortfall and meeting the target of 1.2 million homes.
“Governments can make an immediate difference by accelerating planning approvals, cutting unnecessary red tape and supporting workforce growth across the construction sector.
“If confidence remains weak, fewer homes will be built. Improving conditions for builders is one of the fastest ways governments can help unlock new housing in 2026 and beyond,” Mr Croft concluded.
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