Calls for increased housing supply ramp up

Property organisations have urged the Australian government to do more to address the ongoing housing supply issue amid concerns that it will not reach its 1.2 million housing goal by 2029.

The Property Council of Australia (PCA) has welcomed the Albanese government’s recently announced $500 million Housing Support Program in an effort to help state and territory governments boost housing supply.

However, while this is a welcome step in the right direction, the organisation has said the fund should be doubled.

PCA chief executive Mike Zorbas said the program will better support the government’s 1.2 million new homes target by doubling the funds available.

“We have to do everything we can to reach the national housing goal. We simply cannot afford another swing and a miss,” Zorbas said.

"We need to disrupt decades of undersupply by providing incentives that no state or local political leader can walk past.

“We know unresponsive planning systems across the country are the biggest barrier to housing supply and affordability, so any initiative to streamline these processes is welcome.”

Furthermore, the Housing Industry Association (HIA) has called on the government to “reset and place a pause on any substantial new regulations and let industry get on with building the 1.2 million much-needed homes in conjunction with the National Housing Accord over the next five years”.

“This week [week ending 31 March] the HIA brought together Australia’s construction industry leaders,” HIA managing director Jocelyn Martin said.

“The overwhelming consensus of the group was that the Government’s Housing targets cannot continue to be just another ‘aspirational target or housing statement’ but must result in the actual delivery of these much-needed homes.”

Martin further stated that the industry wants to see a “whole of government commitment” across all levels of government and to “come together and recognise their critical role in the supply of more homes that Australia urgently needs”.

In addition, Master Builders Australia CEO Denita Wawn said that housing costs are one of the “central sources of inflationary pressure” across the economy.

“For owner-occupiers, the price of new dwellings is 4.9 per cent up on a year ago. This is partly the result of cost pressures in the new home building market,” Wawn said.

“It’s further evidence that if we are to win the battle against inflation, we need to pull out all stops to build new homes.

“Building approvals are too low, meaning more needs to be done to encourage new housing supply.

“Whether it’s detached housing or higher density, the same constraints apply, including planning restrictions, lack of capacity to undertake critical infrastructure so land is home-building ready, high taxes and charges, slow approval processes, and workforce shortages.”

[RELATED: Can medium-density properties help with housing supply?]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.