Industry says ‘time is now’ for reforms that accelerate home building
Australia may again fail to reach the federal government’s goal of 240,000 new homes a year under the National Housing Accord, according to a building and construction industry association.
Master Builders Australia (MBA) has cautioned that, based on current conditions, completions are unlikely to meet the target for a second consecutive financial year. It follows a shortfall of more than 60,000 homes in the first year of the accord, which highlighted persistent pressures in the construction sector.
Given last year’s underperformance against the accord, MBA calculates that Australia must now deliver an average of 255,300 new homes annually over the remaining four years of the agreement to meet the overall commitment.
“These warnings need to be listened to, with the shortfall last year meaning we now need to deliver an average of 255,300 new homes per year over the remaining four years of the accord,” said MBA chief executive Denita Wawn (pictured right). “Australia can’t afford for this bar to be raised any further and neither can the government.”
According to Wawn, the organisation had been pressing for policy changes to support higher levels of residential construction. “MBA has continued to advocate for these measures as our industry does not want to see a repeat of the first year’s shortfall and stands ready to deliver more homes for Australians driving affordability for all,” she said.
Wawn framed the current period as critical for setting long-term housing and economic outcomes. “We must get these policy settings right for future generations before it’s too late,” she stressed.
“The time is now for groundbreaking, common sense and evidence backed reforms that accelerate home building, surrounding infrastructure delivery and economic prosperity.”
Since October, MBA has noted some improvement in building approvals but does not consider the uplift sufficient to put the accord back on track.
New data on labour demand, released on Wednesday, is also pointing to a more hesitant construction sector. “Job vacancies in the building and construction industry are now at their lowest level since November 2020, which may be a sign of business hesitation due to uncertain economic conditions,” Wawn said.
MBA links the softer hiring outlook to concerns around interest rate risks, tight margins and broader cost pressures faced by builders and subcontractors. “These conditions must be improved, including the government getting a further handle on inflation and working to boost productivity.” Wawn added.
“They must get a move on and fast-track changes that positively impact the industry including setting a clear target to reduce red tape and by having a clear agenda for regulatory reform and burden reduction.”
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