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HIA Executive Director Benjamin Price said the result reflected a system that is struggling.
"If a council can't fill its own seats, it's fair to ask whether it has the capacity to do everything else we expect of it," Mr Price said.
"Tasmania has 29 councils, and every one is a planning authority. Each council needs planners, surveyors and engineers to process development applications, building applications and plumbing applications. But the reality is that many councils already struggle to recruit and retain those people, resulting in inefficiencies, delays and frustration in the delivery of new housing.
"For our members, that means delays and different rules from one council to the next. For home buyers, it means waiting longer and paying more."
Mr Price said the Future of Local Government Review had already made the case for fewer, better-resourced councils.
"The work has been done, but what's been missing is the political will to act on it.
"We understand island and regional communities have particular needs, and any reform has to keep local representation. But the current structure isn't serving Tasmanians well, and during a housing crisis we can't keep putting this off.
“If local government can’t even get sufficient interest in councillor-positions, how can they be appropriately placed to retain these important planning and regulatory functions for housing delivery?”
HIA is calling on the Government to put forced amalgamations back on the table and to consolidate planning and building approval functions so councils have the scale to deliver in the interests of the Tasmanian communities they are meant to serve.
“During a housing crisis, protecting outdated council structures should not come ahead of getting roofs over the heads of Tasmanians.”
Before introducing another tax, another reporting requirement, another compliance obligation or another cost increase, HIA is calling on government ministers and policymakers to spend a day in the shoes of a small business owner.
The Housing Industry Association (HIA) has welcomed the Australian Government's $5 million pilot investment to support experienced tradespeople to become vocational education and training (VET) teachers, saying it addresses a longstanding challenge facing the construction training system.
Imposing registration and licensing on trades represents a significant impost, further degrading the capacity to deliver homes and other domestic building work. This submission, therefore, is not limited to responding to the Consultation Paper, rather, it addresses more broadly the significant risks that imposing registration and licensing on trades will have on the sector.
The Federal Government has announced that the Australian Taxation Office (ATO) will continue to accept credit card payments for tax liabilities until the end of the 2026-27 financial year, delaying changes that were previously due to take effect on 1 December.