It urges government action to meet National Housing Accord targets
Master Builders Australia has expressed concern over the latest ABS data showing a continued decline in new building approvals, noting that the trend could prevent the country from meeting the National Housing Accord target.
“The new National Housing Accord kicks off in less than five weeks’ time and envisages 240,000 new homes each year,” said Shane Garrett, chief economist at Master Builders Australia. “However, the past 12 months have seen less than 163,500 new home building approvals across Australia.
“Just 60,600 higher density dwellings were approved over the year to April. This is the lowest total for any 12-month period since September 2012 almost 12 years ago.
“The challenge is massive, not impossible, but requires a 47% increase in the volume of new home building output.”
Building Approvals Hit New Low
— Master Builders Australia (@MBA_Aust) May 30, 2024
“We have to rapidly increase housing production to reach Housing Accord targets, but some in government have left the handbrake on," Denita Wawn, CEO
Read more below! https://t.co/7NPnvQeGaW pic.twitter.com/U9oIbaYUty
Denita Wawn (pictured above), chief executive of Master Builders Australia, called on governments to take action to boost construction activity.
“We have to rapidly increase housing production to reach Housing Accord targets, but some in government have left the handbrake on,” Wawn said. “The hurdles are clear to everyone, approval delays, tradie shortages, material cost inflation, out of touch industrial relations changes, inefficient regulation and more.”
She warned that without removing these barriers, reaching the target of 1.2 million new homes by 2029 is unlikely.
“We’re beginning to sound like a broken record, but the situation is critical,” Wawn said. “The community is crying out for more housing supply, but if we don’t urgently clear the way for builders to get on with the job, demand will continue to dwarf supply, and Australian’s will continue to feel the impacts of the housing crisis.”
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