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HIA said the Inquiry comes at a critical time with governments struggling to meet housing supply targets and the mismatch between supply and demand continues to grow.
"The critical question for this Inquiry is not whether Australia needs more social housing. The question is how governments can remove the barriers preventing enough housing of all types from being built," said HIA Managing Director, Jocelyn Martin.
The Inquiry should focus on practical reforms that deliver more housing across the continuum rather than simply expanding existing programs or producing another report identifying the problems without delivering concrete solutions industry has called for across multiple Inquiries and reports.
A key area for consideration should be improvements on the operation of the Housing Australia Future Fund (HAFF), including whether current delivery models are maximising the capacity of the broader residential building industry.
“Australia's detached housing sector has extensive experience delivering large volumes of housing across metropolitan, regional and growth areas.
"We should be looking at how to bring more of these detached home builders into the system, create greater competition and deliver more homes for every dollar invested,” said Ms Martin.
“The Inquiry should also recognise that social housing outcomes cannot be improved without addressing the broader constraints affecting the entire housing system.
"Whether it is social housing, affordable housing or private housing, we are building with the same planning systems, the same infrastructure networks and the same workforce.
"If governments want more social housing, they must also tackle planning delays, infrastructure bottlenecks, workforce shortages and rising construction costs that are constraining housing delivery across the board,” Ms Martin added.
The residential building industry continues to face substantial workforce shortages, limiting the sector's ability to increase supply at the scale required.
HIA will use the Inquiry to advocate for reforms that increase housing supply across all tenures while ensuring social housing forms part of a balanced national housing strategy.
"The long-term solution to Australia's housing challenges is increasing housing supply across the spectrum.
"We need more social housing, more affordable housing and more private housing.
"This Inquiry provides an opportunity to ensure government investment is delivering the maximum number of homes possible and making use of the full capacity of Australia's residential building industry,” concluded Ms. Martin.
The Housing Industry Association (HIA) has welcomed the passage of the ACT Government’s latest planning legislation, saying the reforms will help reduce delays, streamline approvals and support the delivery of more homes across Canberra.
“The Housing Industry Association (HIA) welcomes the Commonwealth and Victorian Government’s joint funding agreement to commit nearly $3 billion to support the delivery of more than 66,000 new homes, including 25,000 for first home buyers across the state,” said HIA Chief Executive Industry & Policy, Simon Croft
Residential building and its associated supply chains should remain exempt from the Framework and any related procurement obligations. Government efforts would be better directed towards improving productivity, reducing unnecessary regulatory burden, strengthening enforcement of existing workplace laws and supporting practical workforce initiatives that increase housing supply and workforce capacity.
The Queensland and Australian Governments have officially opened applications for the new $2.4 billion Infrastructure Activation Fund (IAF), providing grant funding and interest-free loans to help deliver the critical infrastructure needed to unlock new housing across Queensland.