Industry body calls for reforms to boost productivity and meet housing needs
Master Builders Australia has warned that prolonged timelines in building houses and apartment buildings are impacting the industry’s ability to meet housing demand and address the country’s housing crisis.
The industry association analysed data from the Australian Bureau of Statistics showing significant increases in construction times for detached homes and apartments across the country.
According to the report, the average time to build a standalone house has risen from nine months 15 years ago to 12.7 months today — an increase of more than 40%. The situation is even more severe for apartment buildings, with average construction times jumping from 18.5 months to 33.3 months, an 80% increase.
“With advancements in technology and construction methods, we should be building homes faster, not slower,” said Denita Wawn (pictured above), chief executive of Master Builders Australia.
She cited multiple factors contributing to delays, including labour shortages, declining productivity, union agreements, supply chain issues, complex regulatory requirements, and backlogs in occupational certificates and critical infrastructure.
“With advancements in technology and construction methods, we should be building homes faster, not slower."
— Master Builders Australia (@MBA_Aust) November 3, 2024
See the full release below.https://t.co/9Gj31MrkXJ pic.twitter.com/GWhbnVZoWp
The industry association’s data analysis also highlighted an 18% decline in construction productivity over the last decade, a trend Wawn described as concerning.
“Productivity is more than an economic buzzword,” she said. “This data proves what happens in a construction environment without meaningful reform.”
Master Builders Australia called for a coordinated effort, suggesting certain reforms that are essential to improving productivity and meeting Australia’s housing needs.
“Streamlining regulatory approval processes, encouraging adoption of digital solutions, introducing incentives to grow the workforce through domestic and international means, and strengthening the domestic supply chain are just some examples,” Wawn said.
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