The 2022 Housing Accord announced in tonight’s Budget is a welcome signal to the building and construction industry who have been crying out for action to address housing affordability barriers and supply constraints says Master Builders CEO Denita Wawn.
The Accord brings together all levels of government, investors, and the residential development, building and construction sector to unlock quality, affordable housing supply over the medium term.
“Struggles around housing affordability have persisted over many decades. These difficulties have arisen because the supply of homes has not been able to fully keep up with growth in housing demand.
“Over the next three years, Master Builders Australia forecasts that new home building starts will fall significantly short of 200,000 per year, the volume of output that will be needed to meet demand. Our forecasts indicate this threshold will not be exceeded until 2026.
“As a signatory to the Accord, Master Builders Australia will work constructively with governments and industry to deliver the joint housing target of one million new, well-located homes over five years from 2024.
“Master Builders has long advocated for the obstacles faced by the building and construction industry that prevent many of the homes we need from getting built to be addressed. This includes lengthy delays in approvals for land title, development and building applications, occupation certificates, shortage of land in the right places, high developer charges, and inflexible planning laws.
“The RBA has recently identified the capacity constraints limiting the rate of housing growth and the level of dwelling investment with increases in labour and materials costs expected to compress margins and increase the risk of insolvencies, as such, this Accord is timely.
“We thank the federal government for taking the first step in bringing all parties together to start tackling this crisis and look forward to working with all levels of government to ensure this is achieved in a consistent way,” Ms Wawn said.
