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$vuetify.icons.faPhone1300 650 620

Small business confidence falters in residential building sector

Media release

Small business confidence falters in residential building sector

Media release
Australia’s residential building industry has entered the new year with confidence still on shaky ground for small businesses as rising costs and policy uncertainty continue to cloud the outlook.

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.

For more information please contact:

Simon Croft

Chief Executive - Industry & Policy
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