Responding to the National Housing Supply and Affordability Council鈥檚聽聽report, Master Builders Australia CEO Denita Wawn said it鈥檚 clear more needs to be done to reduce the cost of home building to increase housing supply.
鈥淭he report rightfully acknowledges聽the housing system鈥檚 inability to supply sufficient housing that meets the population鈥檚 needs is the primary reason for worsening affordability.
鈥淒espite high demand for housing, people are not going ahead with new builds because the numbers just don鈥檛 stack up.
鈥淏uilders welcome the recommendation that more is needed to boost the industry鈥檚 capacity聽by improving availability of skilled labour, enhancing flexibility in supply chains, increasing the availability of financing and bolstering sector productivity.
鈥淟ow productivity from labour shortages, materials, and poor planning/regulation all drive up building costs and impact housing supply,鈥 Ms Wawn said.
Earlier today, Master Builders Australia released its first聽, which assesses the cumulative impact of positive and negative changes in the industry over the next five years.
鈥淒espite 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.
鈥淯nder the best-case scenario, new home gains have been eroded away by a prolonged labour supply shortage, materials price growth and industrial relations reforms.鈥
鈥淢inister Collins is pursuing some great housing initiatives, but she is being thwarted by a lack of a holistic approach in other portfolios.
鈥淲e have heard a lot of talk from the government about lifting productivity, but it is now time for action.
鈥淩educing burdensome regulations and ensuring laws operate effectively and consistently is essential to relieving businesses of cost and compliance pressures.
鈥淢aster Builders is committed to continue working closely with governments to ensure we are in the best position to meet our home building targets,鈥 Ms Wawn said.