Australia’s biggest challenge in building 1.2m new homes
Australia has upped its home building target to produce 1.2 million homes over five years. Here’s what needs to happen to make that a reality.
Queried as to whether the country has the resources to fulfil the government’s new ambitious task, the Housing Industry Association (HIA) this week said the formidable goal is possible, but identified some potential pain points that need to be rectified as a matter of urgency.
“Skills shortages in the industry are likely to be one of the greatest challenges,” said Jocelyn Martin, the body’s newly appointed managing director, who takes the reins at a pivotal point for the organisation.
She stressed that apprentice pathways and employers who are willing to provide training need support alongside programs to open up the industry to potential professionals currently not captured by the existing avenues of entry.
“Initiatives to attract more females to the sector, incentives to make mature-age apprentices more affordable, and mentoring programs to retain apprentices are all important to support the need for skills,” Ms Martin stressed.
The availability of land could stand to be another hurdle, though Ms Martin noted that the government’s National Planning Reform Blueprint is “a welcome recognition of the need to streamline the approval processes”.
“The home building industry has the capacity to build the homes needed, but it requires access to land at a lower cost, reduced taxes, and stable and reliable policy settings,” she noted.
Moreover, she added that the banking system should take some responsibility to improve capacity, and consider their handling of “cost-plus contracts”, which can be harder to secure loans against.
And she cautioned that regulatory changes impacting the construction of new homes, such as the move to seven-star ratings and beyond, need to involve careful consultation and transition planning to “limit the cost impost on new homes and on affordability”.
With all sectors doing their part, Ms Martin said that the country is up to the challenge ahead.
“This is an ambitious target, but ambition is the path to success and bold action is exactly what is needed. So yes, we can build these new homes, but it will require cooperation across all levels of government and a commitment to unprecedented change,” she said.
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