Intergenerational Report reinforces supply is key to affordability

Statement from Master Builders Australia CEO Denita Wawn

21 September 2026

The 2026 Intergenerational Report released today reinforces that housing supply is the most important factor in tackling housing affordability.

The report notes that “the new supply of housing relative to demand has slowed since 2001, which is a reversal of the trends that occurred over the preceding 25 years.”

Even though the report backs in the Federal Government’s decision to change negative gearing and the capital gains tax discount, it remains Master Builders Australia’s position that these changes should be reversed.

This position is consistent with recently released independent modelling showing the changes will result in 10,700 fewer homes being built over the next four years and put upwards pressure on rents. This comes at a time when Australia is already 88,800 homes behind the National Housing Accord target of 1.2 million new homes.

New polling released this morning also found more than 60 per cent of small-to-medium residential and commercial property developers expect the Federal Budget’s proposed trust tax changes will affect the timing and viability of projects, putting even further pressure on housing supply.

A time of deep housing shortages, geopolitical supply chain instability and higher interest rates, is not the time for policies that make it harder to build the homes Australia needs.

Governments should be doing everything possible to accelerate housing delivery by increasing the construction workforce, cutting unnecessary red tape and encouraging investment in new housing supply, rather than proceeding with poorly considered policies

Builders and tradies, like all Australians, want action on housing affordability. As the 2026 Intergenerational Report makes clear, boosting housing supply is the most important lever.

Media contact: Dylan Hafey, Adviser, Media & Government Relations

0497 330 064 | dylan.hafey@masterbuilders.com.au