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Builders respond to State of the Housing System Report


Responding to the National Housing Supply and Affordability Council’s State of the Housing System 2024 report, Master Builders Australia CEO Denita Wawn said it’s clear more needs to be done to reduce the cost of home building to increase housing supply.

“The report rightfully acknowledges the housing system’s inability to supply sufficient housing that meets the population’s needs is the primary reason for worsening affordability.

“Despite high demand for housing, people are not going ahead with new builds because the numbers just don’t stack up.

“Builders welcome the recommendation that more is needed to boost the industry’s capacity by improving availability of skilled labour, enhancing flexibility in supply chains, increasing the availability of financing and bolstering sector productivity.

“Low productivity from labour shortages, materials, and poor planning/regulation all drive up building costs and impact housing supply,” Ms Wawn said.

Earlier today, Master Builders Australia released its first annual productivity report, which assesses the cumulative impact of positive and negative changes in the industry over the next five years.

“Despite government investment in housing, 80 per cent of the additional new homes that could have been built will never see a shovel hit the ground.

“Under the best-case scenario, new home gains have been eroded away by a prolonged labour supply shortage, materials price growth and industrial relations reforms.”

“Minister Collins is pursuing some great housing initiatives, but she is being thwarted by a lack of a holistic approach in other portfolios.

“We have heard a lot of talk from the government about lifting productivity, but it is now time for action.

“Reducing burdensome regulations and ensuring laws operate effectively and consistently is essential to relieving businesses of cost and compliance pressures.

“Master Builders is committed to continue working closely with governments to ensure we are in the best position to meet our home building targets,” Ms Wawn said.

Media contact: Dee Zegarac, National Director, Media & Public Affairs
0400 493 071 |

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