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“Workforce shortages remain one of the biggest constraints on increasing home building activity, with the nation needing an estimated 83,000 additional skilled workers across our key trades,” HIA Executive Director Future Workforce, Mike Hermon said today.
“Shortages across key residential construction trades, particularly carpentry, are limiting building capacity across the states. Builders across the country are telling us the same thing - demand for housing is there, but access to skilled labour is holding projects back.
“A recent survey of HIA’s small business members indicated that the cost and access to skilled trades were both in the top 5 issues placing pressure on builders. The survey also showed that 67 per cent of respondents said they were having trouble recruiting new staff or retaining existing workers.
“If we do not train more apprentices now, the homes Australia needs simply will not be built.
“Residential construction is a hands-on industry, and apprenticeships provide the practical, on-site training that cannot be replicated in a classroom alone - today’s apprentices are tomorrow’s carpenters, builders and site supervisors.
“HIA welcomes government incentives that are helping employers take on apprentices, including the Priority Hiring Incentive, along with the Key Apprenticeship Program (KAP), to help apprentices purchase tools or meet costs of living challenges while training. These incentives are working and are encouraging more businesses to invest in training.
“However, they must be maintained, simplified and extended if they are to have a lasting impact on housing supply.
“HIA supports apprentices through our group training scheme, which delivers mentoring, pastoral care and helps reduce the cost and risk for builders - particularly small businesses. HIA’s group training model gives apprentices consistent employment and broad site experience, while giving builders confidence to take on and train new workers.
“All tiers of government must recognise that housing supply targets cannot be achieved without sustained investment in skills and training. You cannot set ambitious housing targets without backing them with an equally ambitious commitment to apprentice training.
“Every new home starts with an apprentice on site. Supporting apprentices today is essential to increasing housing supply, easing affordability pressures and building Australia’s future workforce,” concluded Mr Hermon.
“Tasmania recorded a modest improvement in detached home building at the end of 2025, as Australia’s housing construction sector showed clearer signs of recovery,” stated HIA Executive Director – Tasmania, Benjamin Price.
“There were over 10,000 multi-unit starts in New South Wales in the December quarter 2025, the highest since late 2018,” stated HIA Executive Director NSW Brad Armitage.
“Australia commenced construction on 282,500 new homes in the first 18 months of the government’s goal of building 1.2 million new homes over five years. This is 77,500 homes behind schedule,” stated HIA Senior Economist, Tom Devitt.
“The Housing Industry Association welcomes today’s announcement by the Planning Minister for a statewide Community Participation Plan,” declared Brad Armitage, Executive Director NSW.