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{{propApi.successMessage}} {{region}} Change locationHIA survey: regional small builders warning housing shortages will worsen
HIA survey: regional small builders warning housing shortages will worsen
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“The survey highlights the unique pressures facing regional small businesses, which are critical to delivering new homes and supporting local jobs. Regional builders don’t have large workforces or spare cashflow to absorb delays.
“The survey found 68 per cent of small builders have considered scaling back or closing due to red tape, while 73 per cent do not expect to hire more staff in the year ahead, despite ongoing demand for housing.
“Planning delays are a major constraint on regional housing delivery, with 88 per cent of builders reporting approval times longer than eight weeks, and one in three waiting more than six months before construction can begin,” said Mr Croft.
“In regional towns, a single delayed approval can stall a business for months, that hits cashflow, local jobs and the number of homes that can be delivered in the community.
“Workforce shortages are also biting harder outside the capitals, with 67 per cent of small builders struggling to recruit or retain skilled workers.
“Regional builders can’t just pull labour from the next suburb, they rely on local trades and apprentices, and when those workers aren’t available, projects slow or stop.
“The survey shows, pressure is being felt differently across regional Australia. In New South Wales, seven in ten small builders say the time and cost of planning approvals are one of their biggest pressures, with nearly two-thirds also struggling to find skilled labour,” he said.
“In Victoria, more than 85 per cent of small builders identify rising insurance costs as a major challenge, adding to already tight margins. Queensland regional builders are facing some of the most acute workforce shortages in the country, with almost eight in ten reporting difficulty finding skilled workers.
“In Western Australia, two-thirds of small builders say the cost of skilled labour is making it harder to take on new work, particularly in regional centres. South Australian builders are telling us more than three-quarters are struggling to source skilled labour, directly limiting how many homes they can build each year.
“The findings reinforce the need for targeted reforms to support regional small businesses and lift housing supply,” concluded Mr Croft.
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