Government faces mounting pressure to deliver on housing affordability and supply targets
The re-election of the Labor government has been met with cautious optimism from major housing industry bodies, which are calling for immediate and meaningful action to address Australia’s housing challenges.
The Property Council of Australia, Housing Industry Association (HIA), Real Estate Institute of Australia (REIA), and Real Estate Institute of Queensland (REIQ) all welcomed Labor’s return, citing the need for strong policy implementation on housing supply, affordability, and planning.
Property Council chief executive Mike Zorbas (pictured above, far left) said the next term must deliver on key housing and infrastructure initiatives, particularly by supporting policies that attract foreign investment in city development.
“Pro-investment settings that attract overseas money to build our future city assets must be a priority for both the federal and state governments over the next term,” he said, adding that the industry expects early engagement on the design of major election commitments.
HIA managing director Jocelyn Martin (pictured second from left) also urged Prime Minister Anthony Albanese and his government to prioritise housing from the outset.
“The HIA calls on the newly elected federal government to make housing a first-order priority from day one, any delay or political grandstanding will only deepen the nation’s housing crisis,” she said.
Martin reiterated that housing policy must not become politicised, urging all sides of Parliament to implement the solutions already proposed.
“Too often, we see housing policy used as a platform to showboat rather than solve real problems,” she said. “Australians want practical and meaningful reform.”
REIA president Leanne Pilkington (pictured second from right) highlighted the importance of continuity in housing policy, saying Labor’s proposals reflect many priorities in the organisation’s A Home for All Australians plan.
Labor’s promises include a $10 billion fund to support the construction of 100,000 homes and measures to help first-home buyers purchase with a 5% deposit. The retention of existing negative gearing and capital gains tax rules was also welcomed as a sign of policy stability.
“The decision to retain these tax settings is a sign of balanced reforms,” Pilkington said. “This is not the time to introduce destabilising changes to a market already under pressure.”
She added that addressing systemic issues, such as labour shortages and planning delays, would be essential to meeting housing goals.
For REIQ chief executive Antonia Mercorella (pictured far right), a second term gives Labor the mandate and momentum needed to drive large-scale housing reform. She lauded policies like the Help to Buy scheme and the Housing Australia Future Fund but warned that delivery must now follow.
“With a majority and momentum, Australians rightly expect to see swift and decisive action to get roofs over heads,” she said.
Mercorella stressed that current homebuilding levels fall short of the quarterly target needed to reach the 1.2 million homes goal by mid-2029. She recommended the government consider the Coalition’s proposal to invest $5 billion in infrastructure to unlock land supply.
The REIQ also raised concerns about the possible unintended consequences of shared equity schemes on the insurance sector.
“These schemes bypass LMI requirements which may cause some adverse unintended consequences,” Mercorella said. “We urge the government to consult with the insurance industry.”
All associations acknowledged contributions from opposition figures Peter Dutton and Michael Sukkar, encouraging continued bipartisan cooperation on housing issues. Mercorella added that certainty following the election result should help lift market confidence.
“Now that the result is clear, we anticipate a more stable environment and a return to long-term decision-making by buyers, sellers, and investors,” she said.
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