Builders Anticipate Government to Miss Target of 1.2 Million Homes
Master Builders Australia is urging for an increase in workers to address the housing shortage.
The Albanese government is expected to fall short of its target to build 1.2 million homes over the next five years due to poor planning and a shortage of skilled workers.
Forecasts from Master Builders Australia indicate that only 1.09 million new homes are projected to be built from July 1, 2024, to June 30, 2029, resulting in a shortfall of over 112,000 homes compared to the National Housing Accord’s target.
Despite provisions like the $3.5 billion ($US2.3 billion) in payments to state, territory, and local governments and a one-off $2 billion payment to increase social housing stock, the shortfall persists.
Additional commitments include supporting the delivery of 10,000 affordable homes by the Commonwealth over five years starting 2024-25, with state and territory governments agreeing to support the delivery of an additional 10,000, totalling 20,000.
“Constraints on the supply side such as workforce shortages, industrial relations changes, and a flawed planning system hinder the full effectiveness of these measures,” said Master Builders Australia CEO Denita Wawn.
Ms. Wawn highlighted that the industry’s productivity declined by 18 percent over the last 10 years, emphasizing the need for swift planning reforms to reduce building costs and time requirements.
The shortage of laborers in the building and construction workforce needs to be addressed alongside better apprenticeship incentives, reskilling migrants, and targeted international campaigns to bring in skilled workers, she added.
Your Property, Your Wealth similarly warned of soaring property prices in Australia due to the annual building approvals falling short of population growth.
A new bill introduced to support the build-to-rent sector aims to add 150,000 rental homes over the next decade through tax incentives for large-scale build-to-rent projects.
The legislation requires dwellings in these projects to be held under sole ownership for a minimum of 15 years and mandates that at least 10% of the dwellings be offered as affordable rental places.
Treasurer Jim Chalmers and Housing Minister Julie Collins noted that this initiative would contribute significantly to meeting the national housing target.
