Industry urges swift action to address skills gap and meet housing targets
BuildSkills Australia’s latest Housing Workforce Capacity Study has prompted calls from industry groups for urgent measures to address workforce shortages in residential construction.
The report, released this week, outlines the sector’s challenges in meeting the National Housing Accord goal of delivering 1.2 million new homes by 2029.
The study estimates that an additional 116,700 workers will be required by 2029, representing a 24% increase above current workforce levels. It identifies five main strategies to build capacity: expanding apprenticeships and vocational education, increasing female participation, targeted skilled migration, improving productivity, and enhancing the training system.
“The report provides a clear assessment of the workforce challenge and offers a range of practical options for industry and government,” said Jocelyn Martin (pictured top left), managing director at the Housing Industry Association (HIA). “BuildSkills Australia has produced a careful and evidence-based analysis of the workforce pressures facing residential construction.
“The findings reinforce what HIA has been saying for some time, Australia must increase the supply of skilled workers if we are to keep up with housing demand.”
HIA has expressed support for initiatives such as incentives for employers and raising the tax-free threshold for apprentices earning under $45,000. Martin also emphasised the importance of skilled migration, stating, “Domestic training is essential, but it will not be enough on its own.”
“A well-targeted skilled migration program that recognises construction as an essential industry is critical,” Martin said. “We need clear, practical pathways for experienced tradespeople to come to Australia and help fill immediate gaps.”
The report also highlights the need to modernise building practices, streamline regulatory processes, and improve gender balance in the workforce. HIA’s recent ‘She Builds the Future’ program, including the children’s book ‘The House that She Built’, was cited as an example of efforts to encourage more women into the industry.
Master Builders Australia echoed these concerns, urging federal, state, and territory governments to adopt a practical, industry-led approach. Denita Wawn (pictured top right), chief executive of Master Builders Australia, said, “The commitment to addressing skills and workforce shortages is crucial in achieving the National Housing Accord.
“This report gives governments a practical playbook to act swiftly and in a coordinated fashion so that labour supply and training capacity don’t become the handbrake on housing. Government must pull the high-impact levers to reduce the cost and friction of taking on apprentices, open clear pathways for women and mid-career entrants, modernise migration, drive productivity through procurement and planning, and expand the training system’s bandwidth. Do these things now and we can turn commitments into keys in doors.”
The study notes that despite strong demand for housing, new dwelling supply remains at about 44,500 per quarter, with private developers responsible for the vast majority of completions. The sector continues to face pressures from rising delivery costs and reduced purchasing power.
“We will work closely with governments to ensure any policy changes are fit for purpose, do not have any unintended consequences, and resolve the housing crisis,” Wawn said.
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